The Federal Inland Revenue Service (FIRS) has disclosed that despite a 411% increase in revenue, the Federal Government (FG) will continue to borrow to meet its financial obligations.

The agency explained that while tax revenues have grown significantly, they are still not enough to fully finance the country’s budgetary needs, especially with rising infrastructure demands and debt servicing.

According to FIRS, the surge in revenue shows improved compliance and efficiency in tax administration, but borrowing remains necessary to bridge funding gaps. The agency assured Nigerians that the government is working on reforms to gradually reduce reliance on loans while boosting internally generated revenue.

The statement has sparked debate among citizens, with some calling for better spending discipline and accountability to ensure that both taxes and borrowings translate into real development.