Business

FIRS – 411% revenue rise won’t stop FG borrowing

Published

8 months ago

September 24, 2025

The Executive Chairman of the Federal Inland Revenue Service, Zacch Adedeji, on Tuesday said the Federal Government will continue to borrow despite its significant revenue inflows in recent months. He argued that borrowing is not a sign of weakness but part of the country’s broader economic strategy.
Adedeji also revealed that federal revenue collection surged to N3.64tn in September 2025, a 411 per cent jump from N711bn in May 2023.

“Borrowing is not a problem…is borrowing not part of the budget we submitted to the National Assembly. Was it not approved? Are we borrowing aside what was approved?” Adedeji told State House Correspondents during the latest session of the Meet-the-Press series organised by the Presidential Communications Team at the Aso Villa, Abuja.

His comments come barely two months after President Bola Tinubu in July requested a $21.5bn external loan, including a $2bn foreign currency bond and a N757.98bn bond to settle pension liabilities under the Contributory Pension Scheme.

Three weeks earlier, on September 2, Tinubu declared that Nigeria had met its revenue target for 2025 ahead of schedule and would no longer rely on borrowing to fund its budget. However, the administration has been heavily criticised for excessive borrowing.

In his reaction, Adedeji described the move as an integral component of Nigeria’s financial ecosystem and overall economic plan, stressing that the government’s approach is designed to balance revenue performance with long-term development objectives.

He explained, “What is the component of a country’s budget? You have your expenditure, revenue, and loan in all budgets. So, if my expenditure for this year is N100,000 and my plan is that N80,000 will be from my revenue, I will borrow N20,000. If I’ve done revenue of N90,000 and I’m borrowing N10,000 according to what I have in my budget, what is the problem with that?

“Borrowing is not a problem. Don’t forget that banks are part of our economic ecosystem. There is no country or individual in the world that survives based on its own income. Don’t forget that when the government borrows from banks, it will pay interest. It’s from that interest that they pay their salary. It is from the salary that the banks pay taxes to the state government; it is from this profit, the difference between deposit and lending, that gives them the profit that I collect taxes from.

Adedeji explained that government borrowing is not used to pay salaries but rather to secure long-term investments. He asked critics to imagine how much more expensive it would have been if the current fiscal structure had not been built at the time it was. He stressed that borrowing allows governments to avoid higher future costs.

The revenue chief further described borrowing as part of what he termed the “Matchy Concept” in business, which emphasises continuity. According to him, projects with benefits that outlive the present generation should not be shouldered entirely at once. For example, borrowing to build a road ensures that future users can contribute through taxes, thereby paying their fair share over time.

According to him, borrowing is a critical element of any sound economic plan, and no company or country can grow sustainably without it, since it is integral to a viable nation’s ecosystem.

Addressing critics, whom he referred to as “container economists,” Adedeji suggested that many fail to ask the right questions or truly understand the issues. He noted that some rely only on surface-level narratives, drawing their arguments from social media chatter, without grasping the economic logic behind borrowing.

Meanwhile, in his presentation to journalists, Adedeji revealed that federal revenue collection surged to N3.64tn in September 2025, a 411 per cent jump from N711bn in May 2023.

The increase, he explained, was driven by higher non-oil receipts, with FIRS’ non-oil collections topping N1.06tn compared to N151bn two years earlier. Oil revenue from FIRS also grew to N644bn, while VAT jumped more than threefold to N723bn

Adedeji attributed the gains to reforms that streamlined taxes, cut burdens on small businesses, and rationalised incentives. He said ongoing measures, including a new fiscal policy framework, excise rules, and e-invoicing, are expected to deepen compliance and expand the tax net. He also noted that the government plans to harmonise subnational levies, introduce a presumptive regime for hard-to-tax groups, and reduce corporate tax rates as part of broader spending and constitutional reforms.

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Business

See Full List of Top 10 World’s Largest Economies in 2026

Published

4 minutes ago

May 13, 2026

Newsbreak365_Admin

The United States is projected to remain the world’s largest economy in 2026 with a gross domestic product estimated at $32.1 trillion, according to new global economic forecasts obtained from Focus Economics on Wednesday.

The U.S. continues to lead global output through dominance in technology, finance, healthcare, and advanced manufacturing. Growth in artificial intelligence, healthcare innovation, and high-value industries has further widened its lead over other major economies in recent years.

The top 10 world economies ranked in numbers

1. United States — $32.1 trillion
The United States remains the world’s largest economy, accounting for over a quarter of global output in nominal terms. Its economy is highly diversified, with Silicon Valley driving global leadership in AI, biotech, and software, while Wall Street anchors the financial sector.

2. China — $20.2 trillion
China is the world’s second-largest economy, driven by manufacturing, exports, and large-scale industrial production. It remains the leading global producer of electronics, machinery, and textiles, though it faces structural challenges, including a shrinking population and high debt levels.

3. Germany — $5.4 trillion
Germany remains Europe’s largest economy, supported by a strong industrial base and the Mittelstand network of medium-sized manufacturing firms that form the backbone of its export strength.

4. India — $4.5 trillion
India continues its rapid economic rise, driven largely by services and information technology. Its economy has more than doubled over the past decade, supported by a young population and expanding domestic demand.

5. Japan — $4.4 trillion
Japan remains a global manufacturing powerhouse in robotics, automobiles, and electronics, although long-term growth is constrained by an aging population and structural economic stagnation.

6. United Kingdom — $4.2 trillion
The United Kingdom is a major service-based economy, with strengths in finance, insurance, and real estate, anchored by the City of London.

7. France — $3.6 trillion
France has a diversified economy led by luxury goods, aerospace, agriculture, and manufacturing, with global brands such as Airbus and LVMH playing major roles.

8. Italy — $2.7 trillion
Italy combines a strong services sector with manufacturing strengths in fashion, machinery, and automobiles, driven largely by its industrial northern regions.

9. Russia — $2.5 trillion
Russia remains heavily dependent on oil and gas exports, with energy revenues playing a central role in its economy despite ongoing sanctions and geopolitical pressures.

10. Canada — $2.4 trillion
Canada rounds out the top 10, supported by natural resources such as oil, forestry, and mining, alongside a strong services and financial sector.

Economists say the global economy is increasingly being shaped by technology, demographics, energy transitions, and geopolitical tensions, all of which will influence how these rankings evolve in the coming years.

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Business

Nigeria misses OPEC oil production quota again

Published

2 hours ago

May 13, 2026

Newsbreak365_Admin

Again, Nigeria has missed its crude oil production quota set by the Organisation of the Petroleum Exporting Countries after averaging 1.49 million barrels per day in April, below the 1.5 mbpd benchmark.

Figures from the Nigerian Upstream Petroleum Regulatory Commission showed that the country produced an average of 1,488,540 barrels of crude daily in April, representing about 99 per cent of the OPEC quota. When condensates were added, total daily production rose to 1.66mbpd

Last month, the NUPRC said oil production now averaged 1.8mbpd. However, data released on Tuesday was at variance with the report. The latest data mean Nigeria remained below its OPEC allocation for the ninth straight month since July 2025.

The NUPRC document showed that combined crude oil and condensate production peaked at 1.85 mbpd during the month, while the lowest output stood at 1.46 mbpd. The PUNCH reports that the April figures are an appreciable improvement compared to March, when oil output was 1.55mbpd.

Nigeria’s oil production has struggled for years due to crude theft, pipeline vandalism, ageing infrastructure, and underinvestment in the upstream sector. Although output improved marginally in April compared to March, it was still insufficient to meet the country’s OPEC target, underscoring persistent challenges in ramping up production despite government efforts to boost volumes.

The PUNCH reports that Nigeria’s crude production in March was 1.38 mbpd. While there was a 69,000 bpd increase from the 1.31 mbpd recorded in February, the figure is still 117,000 bpd below the OPEC quota.

The figures for February indicated a month-on-month decline of 146,000 barrels per day, widening the country’s shortfall from its OPEC production allocation. This is the eighth consecutive month the country has failed to meet the OPEC quota since July 2025.

Recall that although Nigeria recorded a marginal improvement in January, when production rose from 1.422 mbpd in December 2025 to 1.46 mbpd, the rebound was short-lived as output fell significantly in February 2026.

Earlier data from NUPRC had also shown that crude oil production weakened at the end of 2025. Production declined from 1.436 mbpd in November 2025 to 1.422 mbpd in December, before recovering slightly in January.

In 2025, Nigeria’s crude oil production fell below its OPEC quota in nine months of the year, meeting or slightly exceeding the target only in January, June, and July.

Nigeria opened 2025 strongly, producing 1.54 mbpd in January, about 38,700 barrels per day above its OPEC allocation. However, production slipped below the quota in February at 1.47 mbpd and weakened further in March to 1.40 mbpd, marking one of the widest shortfalls during the year.

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Business

Dangote exports 1.66bn litres fuel amid US-Iran tensions

Published

3 hours ago

May 13, 2026

Newsbreak365_Admin

Fresh data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority has shown that the Dangote Petroleum Refinery & Petrochemicals exported an estimated 1.66 billion litres of refined petroleum products in April 2026.

This came amid mounting tensions in the Middle East and fears of possible disruption to global fuel supply routes following the growing conflict involving the United States and Iran.

An analysis of the NMDPRA’s April 2026 fact sheet by our correspondent showed that the country exported about 513 million litres of Premium Motor Spirit, popularly called petrol; 534 million litres of Automotive Gas Oil, also known as diesel; and 615 million litres of aviation fuel within the month under review.

The Dangote refinery is the only major functional refinery in Nigeria that currently produces enough refined petroleum products for both local consumption and export.

This is the first month the refinery has exported such a high volume of petroleum products, especially jet fuel and diesel, indicating the significance of the 650,000-barrel-per-day plant in Lekki, Lagos State.

The combined export volume translates to approximately 55.4 million litres daily. The development comes as the international oil market faces fresh uncertainty over the security of the Strait of Hormuz, a critical global oil shipping route, following the failure of the United States and Iran to agree on a peace deal.

Industry experts said the rising geopolitical uncertainty had significantly boosted demand for refined petroleum products from alternative suppliers such as Nigeria, especially as Europe, Africa, and parts of Asia scramble for more secure fuel sources.

The NMDPRA document showed that local refineries operated at an average capacity utilisation of 99.12 per cent in April, with the Dangote refinery accounting for the overwhelming share of production.

The regulator stated that the refinery achieved 100 per cent capacity utilisation “for most of the days in April.” The report also indicated that domestic refineries received 18.37 million barrels of crude oil in April, up from 13.11 million barrels recorded in March.

Findings further showed that the refinery maintained strong export momentum despite increased domestic supply obligations. According to the fact sheet, average daily petrol production stood at 53.6 million litres, while 40.7 million litres were supplied locally and 17.1 million litres were exported daily.

Similarly, diesel production averaged 23.6 million litres daily, with exports accounting for 17.8 million litres per day, more than double the domestic supply volume of 8 million litres daily. For aviation fuel, exports stood at 20.5 million litres daily, compared to the domestic supply of 2.6 million litres per day.

The strong aviation fuel export performance comes weeks after reports emerged that domestic airline operators threatened to shut down over the rising cost of the fuel.

There are reports that Nigeria has become a net petrol exporter for the first time in decades due to rising output from the Dangote refinery. The refinery had earlier exported about 434 million litres of petrol in March after domestic production exceeded local consumption levels.

The latest figures underscore Nigeria’s gradual transition from a major importer of refined petroleum products to an export hub within Africa. It was observed that jet fuel exports may rise further if instability in the Middle East continues to disrupt traditional supply chains serving Europe and other regions.

The Middle East accounts for a substantial share of global aviation fuel exports, with the Strait of Hormuz serving as a strategic transit corridor for crude oil and refined petroleum products. The prolonged disruption in the region has tightened global fuel supply and pushed up prices internationally.

The NMDPRA report also revealed that Nigerians consumed an average of 51.1 million litres of petrol daily in April, slightly above the 50 million litres benchmark estimated by the regulator. Diesel consumption stood at 17.3 million litres daily, while aviation fuel consumption averaged 2.5 million litres per day.

Despite increased local refining activity, petrol prices remained elevated across the country. The regulator attributed prevailing prices partly to international crude oil costs, which averaged $120.55 per barrel during the month, while gasoline costs stood at $1,074.97 per metric tonne.

The refinery, with a nameplate capacity of 650,000 barrels per day, is expected to play a central role in Nigeria’s energy security and foreign exchange earnings as global fuel trade patterns shift amid geopolitical tensions.

As the Nigerian refinery exports petrol, the NMDPRA has continued to issue licences for the importation of petrol.

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