Federal Inland Revenue Service Chairman Zacch Adedeji defended government borrowing as standard budget practice during an Abuja press conference. The Tinubu administration eliminated the controversial Ways and Means system that allowed Central Bank direct government financing. Officials converted existing balances from this arrangement into legitimate federal debt with regular servicing requirements. Exchange rate stability resulted from ending money printing policies while maintaining proper loan structures.
Adedeji addressed critics who question continued borrowing despite achieving revenue goals. He emphasized that all debt occurs within National Assembly approved frameworks and budget allocations. Government budgets worldwide contain three essential elements including expenditure, income, and credit components. Banking relationships create economic cycles where loan interest supports employee wages, tax payments, and business profits that return to government coffers. Infrastructure investments through borrowed funds generate sustainable returns as future taxpayers using improved facilities contribute to debt repayment through increased collections.
Adedeji addressed critics who question continued borrowing despite achieving revenue goals. He emphasized that all debt occurs within National Assembly approved frameworks and budget allocations. Government budgets worldwide contain three essential elements including expenditure, income, and credit components. Banking relationships create economic cycles where loan interest supports employee wages, tax payments, and business profits that return to government coffers. Infrastructure investments through borrowed funds generate sustainable returns as future taxpayers using improved facilities contribute to debt repayment through increased collections.
