Business

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

Published

9 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

Remi Tinubu defends her akara/roasted corn business idea, says petty traders given N50, 000 empowerment appreciate it

Published

7 minutes ago

June 30, 2026

Oluwagbenga Olaoye

The First Lady of Nigeria, Senator Oluremi Tinubu, has defended her recent remarks urging low-income citizens to engage in micro-businesses, such as frying akara, roasting corn, or producing kuli-kuli.

The initial comments, delivered to journalists in Abuja on Thursday, June 25, sparked widespread public backlash. Critics argued that promoting low-yield, traditional petty trading is regressive at a time when global economies are transitioning toward technology-driven industries.

Addressing the controversy during an official event in Jigawa State on Monday, June 29, the First Lady dismissed the criticisms, emphasizing that the federal government remains committed to supporting grassroots commerce. She noted that national empowerment initiatives regularly target small-scale vendors, including those selling tomatoes, pepper, vegetables, and roasted plantains.

To support her stance, Tinubu disclosed that the government has distributed ₦100 million in financial grants so far. Under this scheme, approximately 2,000 petty traders have received ₦50,000 each to recapitalize and expand their businesses.

“ I’ve told Her Excellency that we’ve already given, donated about 100 million to her to use to empower 2,000 petty traders. And I know they’ve been talking that I said akara. It’s not only akara, we also have tomato sellers. We have boole, and those also selling pepper, selling vegetables for us in the market.

We will continue to empower them and add to their resources so that their trade can really be sustainable. So that is what we are doing,” she said.

She maintained that the criticism trailing her earlier remarks would not deter the government from its empowerment programmes.

“I know all those people who are affected; they do appreciate it. And we are not intimidated by all those wrong reports. But we are forging ahead and making sure that our people, you know, are well cared for” she said

Mrs Tinubu prayed that Nigerian youths explore other opportunities around them to empower themselves economically.

“Nigeria is a really blessed country. I’ve been travelling, and I pray that our young people will see the resources we have in this nation. We have not even gone to explore yet because we are thinking it’s oil. But there are so many things” she said

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Business

‘It’s not only akara,’ Remi Tinubu defends comments, says FG also supports tomato, pepper sellers

Published

1 hour ago

June 30, 2026

Newsbreak365_Admin

The First Lady, Senator Oluremi Tinubu, has defended her earlier comments on small-scale businesses, saying the Federal Government’s empowerment programmes extend beyond akara sellers to include traders in tomatoes, pepper, vegetables and roasted plantain.

Tinubu spoke on Monday during the inauguration of the newly constructed Abubakar Maje Haruna Hall at the Emir of Hadejia’s Palace in Jigawa State, according to a video aired by TVC News.

Her remarks come days after comments she made about akara, roasted corn and kuli-kuli businesses sparked widespread backlash on social media, with many Nigerians accusing her of trivialising the country’s economic hardship.

Addressing the criticism directly, the First Lady said the Federal Government had donated N100m to the Jigawa State Government to empower 2,000 petty traders in the state.

“Because of the atmosphere, what is going on, I’ve told Her Excellency that we’ve already given, donated about 100 million to her to use to empower 2,000 petty traders.

“And I know they’ve been talking that I said akara. It’s not only akara, we also have tomato sellers. We have boole, and those also selling pepper, selling vegetables for us in the market.

“We will continue to empower them and add to their resources so that their trade can really be sustainable. So that is what we are doing,” she said.

Tinubu said the beneficiaries would each receive N50,000 to recapitalise their businesses.

“We continue to carry the capacity. We have the amount of 2,000 women who are already in small businesses. They will recapitalise their businesses with the N50,000 each. We’ve already given the N100 million,” she added.

She maintained that the criticism trailing her earlier remarks would not deter the government from its empowerment programmes.

“I know all those people who are affected, they do appreciate it. And we are not intimidated by all those wrong reports. But we are forging ahead and making sure that our people, you know, are well cared for,” Mrs Tinubu said.

The First Lady also spoke about Nigeria’s untapped resources, citing an orange orchard she visited in Benue State, and expressed hope that young Nigerians would explore opportunities beyond oil.

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Business

Local refineries import 2m barrels Libyan crude oil amid domestic shortage

Published

2 hours ago

June 30, 2026

Newsbreak365_Admin

Nigeria imported an average of two million barrels of crude oil from Libya, the first of such imports from the North African country ever. Dangote Petroleum Refinery is the major importer of crude into Nigeria.

The import comes amid the high export of crude locally produced in Nigeria to other countries, leaving local refineries with no option but to seek feedstock elsewhere.

Libya Review, a local media outlet in the country, reports that Libya’s crude oil exports reached a new milestone after Nigeria imported Libyan oil for the first time on record, highlighting the growing role of Libyan supplies in regional energy markets amid ongoing disruptions to global trade flows.

According to data published by the Energy Research Unit, Nigeria imported around 64,500 barrels per day of Libyan crude in May 2026, equivalent to approximately two million barrels for the month. “The shipment marks the first recorded Nigerian import of Libyan crude in available historical data dating back to 2013,” the report said.

Recall that there were reports in 2024 that the Dangote Petroleum Refinery was in talks with Libya for the purchase of crude oil. However, the Libyan oil corporation denied negotiating or entering into talks regarding the crude oil supply to any Nigerian refinery.

The statement, written in Arabic in 2024, translates, “The National Oil Corporation denies that it has negotiated or entered into any talks regarding the supply of crude oil to an oil refinery in Nigeria.”

The National Oil Corporation also confirmed then that it was committed to its contracts with its international partners and committed to the legal mechanism for selling Libyan oil raw materials and that it did not work with an immediate sales mechanism.

“In addition, the process of determining raw material prices is carried out through a committee of experts and is approved by the corporation and the Ministry of Oil and Gas,” Libya said in July 2024.

But it appears the agreement has finally been concluded with the supply of 2 million barrels to the Dangote refinery in just one month. By ramping up capacity to 700,000 barrels per day and eyeing 1.4 million barrels per day in 2028, the Dangote refinery is increasingly in need of feedstock from multiple sources.

In 2026, the refinery has already imported cargoes of Angola’s Cabinda and Saxi Batuque crudes, Ghana’s Jubilee crude and, for the first time, Libyan and Guyanese supplies, all of the light sweet or medium sweet variety, according to S&P Global Energy data.

In Nigeria, local refiners have consistently complained of insufficient crude supply due to higher exports. Nigeria exported an estimated 148.9 million barrels of crude oil valued at about N20.22tn in the first five months of 2026, showcasing the scale of the country’s oil export despite persistent concerns over the domestic crude supply obligation.

The crude barrels were exported by both international and indigenous oil companies, including the Nigerian National Petroleum Company Limited.

The figures obtained from the Central Bank of Nigeria indicate that the total volume of crude oil produced by the country during the five-month review period in 2026 was 216.85 million barrels, out of which about 149 million barrels were exported.

Overall, Nigeria exported about 68.7 per cent of the crude oil it produced during the five months, leaving roughly 67.95 million barrels available for domestic refining, storage, operational use, and inventory adjustments.

The import of crude from Libya is coming as international oil markets continue to adjust to supply disruptions linked to the US-Iran conflict and the resulting challenges affecting energy shipments through the Gulf region. These conditions, it was learnt, have allowed Libyan crude to expand its presence in both African and European markets.

Libya is also strengthening energy ties with neighbouring countries while also competing with Nigeria for major oil investors.

It was gathered that Egypt imported approximately 33,000 barrels per day of Libyan crude in April 2026, following imports of 57,000 barrels per day in February. The purchases marked Egypt’s first imports of Libyan crude since 2019 and form part of efforts to secure alternative supplies following agreements to import more than one million barrels per month from Libya.

Tunisia also increased purchases of Libyan crude during 2026, importing around 19,000 barrels per day in March and 10,000 barrels per day in May, despite only occasionally buying Libyan oil in previous years.

Italy remained Libya’s largest customer, importing 348,000 barrels per day in May, accounting for roughly one-third of total Libyan crude exports. Greece, Spain and Turkey followed among the leading buyers of Libyan oil.

The Dangote refinery recently purchased two cargoes of crude oil from the United Arab Emirates, marking its first-ever procurement of Middle Eastern crude as it expands its feedstock sources amid persistent domestic supply constraints.

According to a report by S&P Global Commodity Insights, the two cargoes will be the first sourced by the refinery from any Middle Eastern supplier, signalling a shift from its traditional reliance on Nigerian, African, and United States crude grades.

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