Speaking in an interview in Uzanu, Etsako East Local Government Area of Edo State, Mr Agba emphasised the necessity of borrowing in a growing country like Nigeria. He highlighted the importance of infrastructure development and the provision of essential services for the expanding population. Given the inadequate revenue, borrowing becomes a sound and wise policy.
Mr Agba clarified that borrowing to fund production and economic growth is acceptable as long as there is a capability to repay the loans. He emphasised that Nigeria has a track record of fulfilling its financial obligations, both in terms of interest payments and loan repayment. He pointed out that the issue lies more in revenue generation rather than a debt challenge.
The former minister acknowledged the revenue problem faced by the country, emphasising that tax evasion and avoidance hinder government funding as taxation is a vital source of revenue.
Highlighting the progress made in revenue generation, Mr Agba mentioned that Nigeria reached a significant milestone of N10.4 trillion, a substantial increase from the total federal government budget of N4.5 trillion in 2015. He expressed satisfaction with the efforts made to enhance revenue generation and noted that measures were implemented to address the issue effectively.
Regarding the Customs Service, the former minister acknowledged that the organisation faced challenges primarily related to personnel. He clarified that the Customs Service is primarily a trade facilitation agency rather than solely a revenue-generating body.
Mr Agba observed that the focus of some officers on revenue generation instead of facilitating trade has limited the growth of trade volume and, consequently, revenue. He stressed the importance of understanding the agency's role in promoting trade and increasing revenue through trade facilitation.
Mr Agba's endorsement of borrowing to fund Nigeria's economy aligns with the government's efforts to stimulate economic growth and development. As the country continues to address revenue generation challenges, strategies for increasing tax compliance and improving trade facilitation are crucial for achieving sustainable economic progress.