The immediate past FIRS boss says “FG’s spending of 96% of revenue on debt servicing was unsustainable. …N8.5 trn collected by mid-Sept.
Yesterday, Dr. Zach Adedeji, the chairman of the Federal Inland Revenue Service (FIRS) said that the nation is in a revenue crisis and needs urgent steps to change the situation.
He also mentioned that about 96% of the Federal Government revenue was spent on debt last year, stating that the situation is not sustainable at all.
Whereas, the former chairman of the revenue agency, Nami said that the FIRS generated N8.5 trillion in revenue into the federation’s account as of mid-september.
Recall that one of the reasons why FG removed subsidy from petrol is because of inadequate revenue to run the affair of the country.
Adedeji said: “We are in a revenue crisis, government revenue is low amid a huge public debt. Last year, 96 per cent of government revenue went into debt servicing.
“Where debt has grown bigger than the Gross Domestic Product, GDP, and debt servicing faster than revenue, immediate actions have to be taken to remedy the situation.”
Still on the agenda to optimize revenue generation, he said: “In this direction, therefore, we will key into the reforms being made by President Bola Tinubu who has since inaugurated a Presidential Fiscal Policy and Tax Reforms Committee.
“The mandate of the committee is to, among other things, evolve an effective design and implementation of fiscal policy and tax reforms for economic prosperity.
