The National Assembly on Monday raised concerns over President Bola Tinubu’s ongoing requests for foreign loans, despite reports from revenue-generating agencies indicating that they have significantly exceeded their 2024 revenue targets.
Chairman of the Federal Inland Revenue Service (FIRS) Zacch Adedeji, revealed that as of September 2024, the Nigerian Government had generated N18.5 trillion out of its N19.4 trillion revenue target for the fiscal year, with projections that the total revenue for the year would surpass the target. Specifically, the FIRS generated N5.7 trillion from Company Income Tax, exceeding its N4 trillion target, and N1.5 trillion from Education Tax, far surpassing the N70 billion target. The Nigerian National Petroleum Corporation Limited (NNPCL) also reported exceeding its 2024 revenue target, with N13.1 trillion generated against a projection of N12.3 trillion. Similarly, the Nigeria Customs Service (NCS) exceeded its revenue target of N5.09 trillion, having collected N5.35 trillion as of September.
Given these surpluses, members of the joint committees on Finance, Budget, and National Planning, led by Senator Sani Musa, questioned why the government is still seeking foreign loans. Senator Adamu Aliero (PDP Kebbi Central) specifically asked why the government continues to request loans when excess revenues have been generated by agencies.
In response, Adedeji clarified that borrowing was part of the approved national budget and was essential for financing the fiscal deficit. He emphasized that the government’s borrowing plans were in line with the Appropriation Act passed by the National Assembly. Similarly, Minister of Budget and Economic Planning, Senator Atiku Bagudu, explained that while some agencies had exceeded their targets, borrowing was necessary to address the fiscal deficit, which stands at N9.7 trillion. He further mentioned the government’s long-term development agenda, including plans to achieve a GDP per capita of $33,000 by 2050.
The Minister of Finance, Wale Edun, echoed these points, stating that borrowing remained crucial for adequately funding the budget, despite the surplus revenues.
The session also brought attention to the Nigeria Immigration Service (NIS) over its controversial Public-Private Partnership (PPP) arrangement for passport production. Under the current deal, a consultancy firm receives 70% of the proceeds, leaving the government with just 30%. Senator Musa criticized this imbalance, ordering the Immigration Service to present all documents related to the PPP agreement for review by the end of the week, stating that the arrangement “must be reviewed or canceled” as it was severely disadvantaging the Nigerian people.
