Nigeria’s top revenue-generating agencies have surpassed their targets for 2024, raking in a staggering ₦37 trillion by September.
Despite this financial windfall, the Federal Government has stated that borrowing remains necessary to fund the national budget.
This revelation came during a one-day session with the Senate Joint Committees on Finance, Budget, and National Planning, led by Senator Sani Musa.
The interactive session, which lasted over four hours, focused on the 2025–2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
Customs Sets the Pace
The Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adeniyi, announced that Customs exceeded its annual target.
By September 30, the NCS had generated ₦5.352 trillion, surpassing its ₦5.09 trillion goal for 2024.
Adeniyi revealed even more ambitious targets for the future.
“For 2025, ₦6.3 trillion is projected, with plans for a 10% increase in 2026 and another 10% increase in 2027,” he stated.
NNPCL Hits Record Revenue
Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), shared a similar success story.
Kyari disclosed that the NNPCL raked in ₦13.1 trillion, exceeding its ₦12.3 trillion target for 2024.
The agency’s revenue projection for 2025 is set at an ambitious ₦23.7 trillion.
“This performance reflects our commitment to driving sustainable growth in Nigeria’s oil sector,” Kyari said.
FIRS Leads the Tax Revolution
The Federal Inland Revenue Service (FIRS) also reported outstanding results, with its Chairman Zacch Adedeji detailing significant achievements.
Adedeji stated that FIRS surpassed its target across various tax components.
“For Company Income Tax, ₦4 trillion was targeted, but ₦5.7 trillion has been realized,” he revealed.
The Education Tax performance was even more dramatic.
“While we aimed for ₦70 billion, we achieved ₦1.5 trillion,” he added.
Overall, FIRS has generated ₦18.5 trillion by September, nearly reaching its ₦19.4 trillion target for the year.
“This clearly shows that the target will be far exceeded by the end of the year,” Adedeji emphasized.
Senate Questions Borrowing Despite Surplus Revenue
The success stories from these agencies were not enough to silence concerns over the Federal Government’s borrowing habits.
Senator Adamu Aliero of Kebbi Central raised the issue.
“What is the Federal Government doing with the excess revenues generated by these agencies? Why is there still a request for foreign loans?” he asked.
Adedeji defended the borrowing, explaining that it was part of the approved appropriation act.
“Borrowing is a component of the budget passed by the National Assembly. Surpassing revenue targets doesn’t automatically eliminate the need for loans,” he clarified.
Immigration Faces Scrutiny Over PPP Deal
Not all agencies were commended during the session.
The Nigerian Immigration Service (NIS) faced criticism over its Public-Private Partnership (PPP) arrangements for passport production.
The controversial agreement gives a consultancy firm 70% of the revenue, leaving the government with just 30%.
Senator Sani Musa described the deal as unacceptable.
“Nigeria and Nigerians are being seriously shortchanged. This PPP arrangement must be reviewed or canceled,” he declared.
The committee ordered the NIS to submit all documents related to the deal by the end of the week.
Background and Implications
Nigeria has struggled with balancing high revenue potential and fiscal discipline.
While agencies like NCS, NNPCL, and FIRS have demonstrated exceptional performance, questions linger about the management of these resources.
Experts believe that Nigeria’s reliance on borrowing, despite growing revenues, highlights deeper structural issues in budget implementation.
Senator Musa’s strong words about the NIS deal underscore broader concerns about transparency and accountability in public finance management.
