…Says Figures Exaggerated
The Federal Government on Monday dismissed claims that the administration of President Bola Tinubu had borrowed about N80tn in the last three years.
It described such figures as exaggerated and largely the result of accounting adjustments and misinterpretation of debt data.
Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, made the clarification while briefing the Senate Committee on Finance on the state of the nation’s economy.
Oyedele was responding to concerns raised by the lawmakers over reports that the current administration had accumulated about N80 trillion in debt, in addition to the N75 trillion inherited from the previous government.
The Minister said the actual borrowing by the Tinubu administration was far below the figures being circulated by analysts and public commentators.
According to him, a significant portion of the increase in Nigeria’s debt stock resulted from the revaluation of the country’s foreign currency-denominated debt following the depreciation of the Naira.
He also cited the securitisation of Ways and Means advances obtained by the previous administration as a factor.
“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.
“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.
“Another important factor is the securitisation of the Ways and Means advances from the previous administration, which the National Assembly approved.
“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.”
Continuing, the Minister said, “The actual amount this administration has borrowed is nowhere near what many people believe. Even for domestic borrowing, much of it is refinancing.
“Debt that was borrowed previously matures, and the government raises new debt to refinance it. That is not new borrowing.”
Oyedele maintained that the government had adopted a prudent borrowing strategy, insisting that loans obtained under the current administration were targeted at critical infrastructure projects and other productive investments rather than recurrent expenditure.
“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.
“We see debt as leverage. Every Naira and every dollar borrowed should generate more value than the amount borrowed,” he added.
Despite the Minister’s explanations, some lawmakers expressed concern over what they described as the poor implementation of the capital component of the 2026 budget.
Senate Chief Whip, Mohammed Monguno and Senator Adamu Aliero criticised the pace of capital project execution, with Monguno arguing that failure to implement appropriated capital projects undermines the intent of the budget and weakens development outcomes.
The Chairman of the Senate Committee on Finance, Senator Sani Musa, however, defended the government’s efforts and assured lawmakers that the impact of capital budget implementation would soon become evident across the country.
Addressing journalists after a closed-door session with the Minister and members of the government’s economic team, Musa said discussions focused on improving budget implementation and aligning expenditure with available revenue.
According to him, both the executive and legislature are working towards a more efficient budgeting framework.
“Performance and priority-based budgeting systems are being looked at to replace the envelope system and also reverting to the old system of payments for contractors,” Musa said.
He expressed optimism that the proposed reforms would enhance budget execution, improve fiscal discipline and ensure that government spending delivers greater value to Nigerians.
