The Federal Inland Revenue Service (FIRS), Nigeria Customs Service, and Nigeria National Petroleum Company Limited (NNPCL) announced on Monday that they exceeded their respective revenue targets for the current fiscal year. During a session with the Joint Committee on Finance, Budget, and National Planning on the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP), key agency leaders provided updates on their performance. Record-Breaking Revenue Achievements FIRS Chairman Zacchaeus Adedeji reported significant progress, stating that all revenue components surpassed expectations. For instance, N5.7 trillion was generated from company income tax, far exceeding the N4 trillion target, while education tax collections reached N1.5 trillion against a N70 billion target. Overall, FIRS realized N18.5 trillion out of the N19.4 trillion target by the end of September, with the expectation of further surpassing the annual projection. NNPCL’s Group Chief Executive Officer, Mele Kyari, shared that the company exceeded its 2024 revenue projection of N12.3 trillion by reaching N13.1 trillion before the third quarter’s end. For 2025, NNPCL aims to remit N23.7 trillion to the federation account. Similarly, Nigeria Customs Service Comptroller-General Bashir Adeniyi disclosed that as of September 30, the agency had generated N5.352 trillion, surpassing the N5.09 trillion 2024 target. Customs also set ambitious goals of N6.3 trillion for 2025 and annual 10% increases for subsequent years. Lawmakers Question Excessive Borrowing Despite these successes, lawmakers voiced concerns about the government’s reliance on borrowing to fund capital projects. Senator Adamu Aliero (Kebbi Central) questioned why borrowing persists despite strong revenue performances. In response, FIRS Chairman Adedeji clarified that borrowing is part of the National Assembly-approved appropriation act, ensuring that the executive operates within the legislature’s framework. Similarly, Budget and Economic Planning Minister Senator Atiku Bagudu emphasized that borrowing is necessary to address budget deficits, including the N9.7 trillion gap in the 2024 budget. Finance Minister Wale Edun reiterated that despite increased revenue, borrowing remains crucial for comprehensive budget funding, especially for developmental projects targeting the most vulnerable populations. Immigration Service Under Scrutiny The Nigeria Immigration Service faced backlash over a controversial private-public partnership (PPP) for passport production. The agreement, which allocates 70% of proceeds to a consultancy firm and only 30% to the government, was deemed “unacceptable” by committee chair Senator Sani Musa. He demanded a review or cancellation of the arrangement, instructing the agency to present all relevant documents by the end of the week. Looking Ahead For 2025, the government projects total revenue generation of N49.7 trillion, signaling continued efforts to optimize resources while addressing structural budgetary challenges. READ ALSO:
The Senate has officially approved President Bola Tinubu’s request for a $2.2 billion loan, aimed at addressing part of the ₦9.7 trillion budget deficit for the 2024 fiscal year. This approval came after a report was presented by Aliyu Wamakko, the Chairman of the Senate Committee on Local and Foreign Debts, during a plenary session. Deputy Senate President Jibrin Barau, who presided over the session, praised the committee for its swift and thorough examination of the loan proposal. In a letter read at both the Senate and House of Representatives plenaries earlier this week, President Tinubu outlined that the loan would be integral to his administration’s fiscal strategy for 2024. Senate President Godswill Akpabio, reading from the letter, confirmed that the $2.2 billion (approximately ₦1.77 trillion) is already included in Nigeria’s external borrowing plan for the upcoming fiscal year. Akpabio also directed the Senate Committee on Local and Foreign Debts to expedite its review of the loan request and report its findings within 24 hours. Despite the deadline passing on Wednesday, the committee submitted its report on Thursday, leading to the loan’s approval. Wamakko’s report, titled Implementation of New External Borrowing of ₦1.77 Trillion ($2.2 Billion) in the 2024 Appropriation Act, explained that the loan is crucial for funding ongoing projects as outlined in the 2024 Appropriation Act, which are essential for Nigeria’s growth and development. According to Wamakko, the loan will also aid in the implementation of Nigeria’s Debt Management Strategy, which aims to reduce borrowing costs, extend debt maturity, create space for domestic market borrowers, and boost the nation’s external reserves. He further explained that Nigeria could raise the required funds through various means, including issuing Eurobonds in the International Capital Market (ICM). The committee recommended that the Senate approve the external borrowing of ₦1.77 trillion ($2.21 billion), which will be raised from one or more sources, such as the issuance of Eurobonds, sovereign Sukuk debt, or syndicated loans, depending on market conditions. Wamakko added that, given the increase in the official exchange rate from USD1.00/₦800 to approximately ₦1,640, the extra funds generated from this adjustment should be exclusively directed toward capital projects in 2024. This would ensure that additional funds are channeled into infrastructure and developmental projects, contributing to long-term growth and stability for the country. Following the presentation of the report, the Senate approved the loan without any objections, at the Committee of Supply. In conclusion, the Deputy Senate President commended the Senate committee for their thorough work, expressing gratitude for the timely handling of the matter. READ ALSO:
