Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said the sharp increase in Nigeria’s public debt is largely the result of the naira’s depreciation and accounting adjustments rather than extensive new borrowing by President Bola Tinubu’s administration.
Gatekeepers News reports that Oyedele made the clarification on Monday while briefing the Senate Committee on Finance on the state of the economy. He was responding to concerns raised by Senator Adamu Aliero (Kebbi Central), who questioned reports suggesting the current administration had borrowed about N80 trillion in addition to the N75 trillion debt it inherited.
The minister said comparing Nigeria’s debt stock at the beginning of the administration with the current figure without considering exchange rate movements gives a misleading picture.
“When this administration came into office, public debt was around N75 trillion. Many people simply compare that figure with today’s debt stock and conclude that this government has borrowed massively,” Oyedele said.
“However, it is important to note that, following the reforms and the depreciation of the naira, the foreign currency component of our public debt had to be revalued because Nigeria reports its debt in naira.
“That accounting adjustment alone added more than N40 trillion to the public debt figure.”
Oyedele also attributed the increase in the debt stock to the securitisation of the Ways and Means advances inherited from the previous administration, a move approved by the National Assembly.
“Another important factor is the securitisation of the Ways and Means advances from the previous administration, which the National Assembly approved,” he said.
“About N33 trillion was added to the public debt through that process. It was not new borrowing; it was simply bringing previously existing obligations onto the official debt books.
“These factors have not always been properly explained, which is why the reported public debt appears much larger.
“The actual amount this administration has borrowed is nowhere near what many people believe.”
According to the minister, much of the government’s domestic borrowing has been used to refinance maturing obligations rather than accumulate new debt.
“Even for domestic borrowing, much of it is refinancing. Debt that was borrowed previously matures, and government raises new debt to refinance it. That is not new borrowing,” he said.
Reaffirming the administration’s fiscal approach, Oyedele said borrowing has been guided by the need to finance infrastructure and support long-term economic growth while maintaining debt sustainability.
“This administration has been very responsible in its borrowing. We understand the concerns of Nigerians and of the distinguished senators, but we remain fully committed to debt sustainability,” he said.
“We see debt as leverage. Every naira and every dollar borrowed should generate more value than the amount borrowed.”
During the session, Senate Chief Whip Tahir Monguno (Borno North) and Senator Aliero criticised the slow implementation of the capital component of the 2026 budget, with Monguno describing the delay as an impeachable offence.
Responding, Chairman of the Senate Committee on Finance, Senator Sani Musa, assured lawmakers that implementation of the capital budget would soon improve.
Speaking after a closed-door meeting with the minister and members of the economic team, Musa said both the executive and the committee were working to strengthen budget implementation.
“Performance and priority-based budgeting system is being looked at to replace the envelope system and also reverting back to old system of payments for contractors,” he said.
