By National Assembly Queries Tinubu’s Loan Requests Despite Revenue Surplus
The National Assembly on Monday scrutinized President Bola Tinubu’s repeated loan requests, questioning their necessity after federal revenue-generating agencies reported surpassing their 2024 targets.
The Federal Inland Revenue Service (FIRS) Chairman, Zacch Adedeji, revealed that the agency generated ₦1.5 trillion in education tax revenue, far exceeding its ₦70 billion target. Similarly, Company Income Tax collections reached ₦5.7 trillion, surpassing the ₦4 trillion projection. By September, total revenue of ₦18.5 trillion had been realized out of the ₦19.4 trillion annual target, with expectations of exceeding this by year-end.
During an interactive session with the National Assembly’s joint committees on Finance, Budget, and National Planning, other agencies reported similar successes. The Nigerian National Petroleum Company Limited (NNPCL) disclosed earnings of ₦13.1 trillion, surpassing its ₦12.3 trillion target. Customs Service also reported ₦5.35 trillion revenue against a ₦5.09 trillion target for the year.
Despite these gains, lawmakers expressed frustration over ongoing borrowing. Senator Adamu Aliero (PDP Kebbi Central) challenged the rationale for loan requests when revenue agencies are reporting surpluses.
In response, FIRS Chairman Adedeji and Minister of Budget and Economic Planning Atiku Bagudu argued that borrowing remains essential to fund the ₦9.7 trillion deficit in the ₦35.5 trillion 2024 budget. Adedeji explained that borrowing was pre-approved in the Appropriation Act and necessary for budgetary balance. Bagudu added that loans are critical to addressing deficits and driving productivity, especially for vulnerable populations, as part of the government’s Agenda 2050.
Minister of Finance Wale Edun also emphasized the need for loans to sustain the federal budget despite increased revenues.
Meanwhile, the Immigration Service faced backlash for an alleged exploitative Public-Private Partnership (PPP) on passport production, which allocates 70% of proceeds to a consultancy firm, leaving just 30% for the government. Senator Sani Musa, Chairman of the Committee, demanded a review or cancellation of the agreement, calling it “unacceptable” and insisting on full documentation by week’s end.
The session underscored a growing tension between legislative approval for loans and rising revenues from government agencies, raising questions about fiscal priorities and accountability.
