FG’s borrowing based on n’assembly’s approval, says Zacch Adedeji

Zacch Adedeji, chairman of Federal Inland Revenue Service (FIRS), says the federal government’s borrowing is based on the national assembly’s approval.

Adedeji spoke on Monday in Abuja at an interactive session on the 2025-2027 medium-term expenditure framework (MTEF) and fiscal strategy paper (FSP) for revenue-generating agencies.

The interactive session was organised by the national assembly joint committees on finance, and national planning and economic affairs.

Responding to a question about the government’s use of excess revenue amidst frequent loan requests, Adedeji said the loans requested were incorporated into the appropriation act.

“Borrowing is part of what had been approved by the national assembly for the federal government, meaning that the executive borrows based on the approval of the legislature,” he said.

“The fact that we meet revenue targets and even surpassed them as revenue generating agencies does not mean that the borrowing component of the appropriation law passed by the national assembly should not be activated.”

On November 19, President Bola Tinubu asked the national assembly to approve a loan request of $2.2 billion.

At its last meeting, the federal executive council (FEC) approved the $2.2 billion external borrowing plan, saying it would strengthen the country’s finances and support economic reforms.

According to Wale Edun, minister of finance and coordinating minister of the economy, the financing package will be raised through a combination of eurobonds and sukuk.

He said approximately $1.7 billion is expected from the eurobond offer and $500 million from the sukuk financing.

The senate and the house of representatives approved the loan request on November 21.