The Federal Government has dismissed claims that President Bola Tinubu’s administration borrowed about N80 trillion since taking office. Instead, it explained that the large increase in Nigeria’s public debt is mainly due to accounting changes, the weakening of the naira, and the official recording of old financial obligations.
Speaking before the Senate Committee on Finance on Monday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said many Nigerians had misunderstood the country’s debt figures. He made the clarification while answering questions from lawmakers during a session on the state of the nation’s economy.
Senator Adamu Aliero had asked the minister to explain reports claiming that the current administration added nearly N80 trillion to the N75 trillion debt inherited from the previous government.
In response, Oyedele said comparing the old debt figure with the current one without understanding the details gives a false impression. He explained that when the Tinubu administration came into office, Nigeria’s public debt stood at around N75 trillion.
According to him, one major reason for the increase is the depreciation of the naira. Since a large part of Nigeria’s debt is in foreign currencies, the value of those loans became much higher when converted into naira after the exchange rate changed. He said this adjustment alone increased the debt figure by more than N40 trillion, even though the government did not borrow new money.
The minister also pointed to the securitisation of the Ways and Means advances received by the previous administration. He explained that about N33 trillion was added to the official debt records after the National Assembly approved the process. He stressed that this was not fresh borrowing but the formal recognition of existing obligations that had not previously appeared in the public debt records.
Oyedele added that many reports failed to explain these details, leading many Nigerians to believe that the government had borrowed much more than it actually had.
He also explained that some domestic borrowing is simply refinancing. This means that when older loans become due for repayment, the government raises new loans to pay them off. He said this should not be mistaken for additional borrowing because it replaces existing debt rather than creating new obligations.
The finance minister assured lawmakers that the Tinubu administration is borrowing carefully and only for projects that can improve the economy, such as infrastructure and other productive investments. He said the government remains committed to keeping the country’s debt at a sustainable level and ensuring that borrowed funds create long-term value.
Despite the explanation, some senators expressed concern over delays in implementing the capital projects included in the national budget. Senate Chief Whip Tahir Monguno described the slow release of funds for capital projects as a serious issue, while Senator Aliero warned that the delays could affect budget performance.
However, the Chairman of the Senate Committee on Finance, Senator Sani Musa, defended the government’s economic team. He said work is ongoing to improve budget implementation and ensure spending matches available revenue. He also revealed that a new performance-based budgeting system is being considered to improve efficiency and project delivery.
The issue of Nigeria’s rising debt remains a major topic of public discussion, especially as the government continues to defend its borrowing strategy and address concerns about debt servicing costs and the impact of ongoing economic reforms.
