National Assembly Challenges Tinubu's Loan Justification Amid Surging Revenue from Customs and FIRS

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The National Assembly on Monday raised concerns over President Bola Tinubu's loan request, questioning its necessity as key federal revenue-generating agencies reported surpassing their 2024 targets.

During a joint session of the Senate and House Committees on Finance, Budget, and National Planning, the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, disclosed that the agency had exceeded expectations, generating N1.5 trillion in education tax revenue against a target of N70 billion. He further noted that the agency collected N5.7 trillion in company income tax, surpassing its N4 trillion goal.

Adedeji emphasized that total revenue collection as of September 2024 stood at N18.5 trillion out of the projected N19.4 trillion for the year, positioning the FIRS to exceed its annual target well before December. He added that these results were achieved despite economic challenges.

Similarly, Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), reported revenue earnings of N13.1 trillion, surpassing the initial projection of N12.3 trillion for the fiscal year. He forecasted a remittance of N23.7 trillion to the Federation Account in 2025.

The Nigeria Customs Service also joined the ranks of high-performing agencies. Comptroller-General Bashir Adeniyi revealed that Customs had generated N5.35 trillion by the end of September, exceeding its annual target of N5.09 trillion. Adeniyi projected revenue increases of 10% annually for 2025 and 2026.

Despite these impressive revenue figures, lawmakers, led by Senator Adamu Aliero, questioned the rationale behind the federal government’s continuous borrowing. “With such significant revenue surpluses, why does the government persist in seeking foreign loans?” Aliero inquired.

In response, Zacch Adedeji clarified that borrowing was a component of the Appropriation Act passed by the National Assembly, emphasizing that the loans were already approved by the legislature to fund budget deficits. Similarly, Senator Atiku Bagudu, Minister of Budget and Economic Planning, stressed the need for borrowing to bridge the N9.7 trillion deficit in the 2024 budget, ensuring the government could fund critical programs and support vulnerable populations.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, echoed this sentiment, underscoring the importance of external funding to meet fiscal obligations, even as revenue targets were surpassed.

However, other concerns surfaced during the session, including an allegedly unfavorable public-private partnership (PPP) for passport production managed by the Nigerian Immigration Service. The deal, which reportedly allocated 70% of proceeds to a consultancy firm and only 30% to the government, drew sharp criticism from lawmakers. Senator Sani Musa, chairman of the committee, demanded the review or termination of the agreement, calling it detrimental to national interests.

The interactive session highlighted a paradox: record-breaking revenue achievements juxtaposed with persistent fiscal deficits and reliance on foreign loans. As the debates continue, the federal government faces mounting pressure to justify its financial strategies and ensure transparency in public-private partnerships.

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