Zacch Adedeji: Borrowing vital to economic growth, Nigeria stays within limits
Borrowing is not a problem; it is part of an economic plan
Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS), says achieving revenue targets does not mean the federal government will stop borrowing.
Speaking to State House correspondents in Abuja on Tuesday, Adedeji described borrowing as a normal and necessary part of national budgeting when used responsibly.
“A nation’s budget comprises expenditure, revenue, and borrowing,” he said.
“Borrowing is not a problem; it is part of an economic plan. When government borrows from banks, those funds circulate through salaries and taxes, sustaining the wider economy.”
Adedeji explained that loans typically fund long-term projects whose benefits extend across generations, citing infrastructure as an example.
“When you build a road today, those who use it in the future will pay their fair share through taxes,” he noted.
He added that borrowing allows government to match spending with future revenue and to spread the cost of essential projects.
“Any company or country that will grow has to borrow because it is part of the ecosystem of a viable nation,” he said.
The FIRS boss stressed that Nigeria’s borrowing remains within the limits approved by the National Assembly and is tied to productive investments.
“Even when the president says revenue targets are met, borrowing is still part of the approved budget. We are not borrowing outside what is authorised,” he said.
