The Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, has said that Nigeria’s dwindling revenue requires reforms.
Adedeji made the remarks in Ilesa, Osun State, on Friday while delivering the University of Ilesa 2025 Distinguished Lecture Series titled “Economic Resilience in an Era of Dwindling Revenue,” the first in the series.
He said the country must embrace reforms anchored on four key pillars to weather the storm of unstable revenue.
Using Nigeria’s economic indicators—including GDP growth, tax-to-GDP ratio, oil revenue share, and debt service-to-revenue ratio—Adedeji acknowledged that while progress has been made, the country’s fiscal condition remains fragile.
He stressed the need to rationalise expenditure, expand the tax base, and adopt stronger fiscal rules such as debt ceilings.
“One truth stands out: dwindling revenue is not the end of the road: they are a call to reform. Our fiscal pressures undeniable; Debt service obligations are high, traditional revenue sources are evolving, and societal demands are intensifying.
“Yet history teaches us that the most resilient economies are not those that avoided hardship, but those that embraced adversity as a catalyst for transformation.
“This moment must not be seen as a crisis to be managed but as an opportunity to reimagine, innovate, and rebuild with courage, clarity, and conviction,” he said.
Adedeji also emphasised the need for a broadened and equitable revenue system, disciplined and transparent public financial management, a diversified economic base, and strong and accountable institutions.
He warned that the revenue situation cannot be addressed with half measures or politically expedient actions but requires strategic foresight, institutional resilience, and intergenerational thinking.
On efforts by FIRS under his leadership, he said the agency has embarked on initiatives to transform it into a modern, technology-enabled, intelligence-led revenue authority.
Earlier, Prof. Femi Ashaolu, Vice Chancellor of the University of Ilesa, commended Adedeji for his efforts to redefine the country’s tax system.
He noted that the university has been recording steady growth and currently runs about 97 NUC-accredited courses.
The comments follow reports that federal revenue collection surged to N3.64 trillion in September 2025, a 411% jump from N711 billion in May 2023. Adedeji defended government borrowing, saying it is part of a broader economic strategy:
He added, “Borrowing is not a problem…is borrowing not part of the budget we submitted to the National Assembly? Was it not approved? Are we borrowing aside what was approved?”
His remarks come after President Bola Tinubu requested a $21.5 billion external loan in July, including a $2 billion foreign currency bond and a N757.98 billion bond to settle pension liabilities under the Contributory Pension Scheme.
