The Federal Government has dismissed claims that President Bola Tinubu’s administration borrowed an additional N80 trillion since assuming office, describing the reports as misleading and based on a misunderstanding of Nigeria’s debt figures. Speaking before the Senate Committee on Finance on Monday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said much of the increase in the country’s public debt was driven by accounting adjustments rather than fresh borrowing.
Oyedele explained that when the current administration took over, Nigeria’s public debt stood at about N75 trillion. According to him, the sharp depreciation of the naira significantly increased the value of the country’s foreign-denominated debt when converted to local currency, adding more than N40 trillion to the debt stock on paper. He stressed that this was not new borrowing but a reflection of exchange rate realities and reporting standards.
The minister further noted that another major factor behind the increase was the securitisation of the Ways and Means advances inherited from the previous administration. He said the National Assembly had approved the formal recognition of about N33 trillion in existing obligations, which were subsequently added to the official debt records. Oyedele maintained that this process merely brought previously accumulated liabilities into the government’s books and should not be mistaken for new loans.
While reassuring lawmakers that the government remains committed to responsible borrowing, Oyedele said the administration’s debt strategy is focused on financing infrastructure and productive sectors capable of generating economic growth. He added that much of the domestic borrowing undertaken so far has been for refinancing maturing obligations rather than increasing the nation’s debt burden. According to him, every loan secured by the government is expected to create value that exceeds its cost.
Despite the clarification, some senators expressed concerns over the slow implementation of the capital component of the 2026 budget, warning that delays could affect development projects and overall budget performance. However, Senate Finance Committee Chairman Sani Musa defended the economic team, revealing that discussions were ongoing to introduce a performance-based budgeting system. As debates over Nigeria’s rising debt profile continue, the government insists that the figures being circulated do not accurately reflect fresh borrowing but rather the impact of economic reforms, exchange rate adjustments, and inherited financial obligations.
source: punch
