…Says Over N40tn Debt Increase Came From Naira Depreciation
…Explains N33tn Ways and Means Securitisation To Senate
Daud Olatunji
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on Monday said the sharp increase in Nigeria’s public debt from about N75tn to over N140tn under the President Bola Tinubu administration was driven largely by the depreciation of the naira and accounting adjustments, not fresh borrowing as widely perceived.
Oyedele made the clarification while briefing the Senate Committee on Finance on the state of the economy, dismissing claims that the Tinubu administration had borrowed an additional N80tn since assuming office in May 2023.
The minister’s explanation came in response to concerns raised by Senator Adamu Aliero (Kebbi Central), who questioned reports suggesting the Federal Government had significantly expanded the country’s debt burden within two years.
According to Oyedele, a direct comparison between the debt stock inherited by the administration and the current figure without factoring in the effects of exchange rate depreciation presents a misleading picture of the nation’s fiscal position.
He explained that the devaluation of the naira significantly increased the naira value of Nigeria’s external debts, automatically inflating the country’s debt profile because public debt is reported in local currency.
“When this administration came into office, public debt was around N75tn. Many people simply compare that figure with today’s debt stock and conclude that this government has borrowed massively,” Oyedele told lawmakers.
“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 N40tn to the public debt figure.”
The minister also attributed another major increase in the debt stock to the securitisation of the Ways and Means advances inherited from the previous administration.
He said the National Assembly-approved exercise added about N33tn to the official public debt but stressed that it merely recognised existing liabilities rather than creating fresh ones.
“About N33tn 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,” Oyedele explained.
He further clarified that much of the Federal Government’s domestic borrowing had been undertaken to refinance maturing debts rather than accumulate new liabilities.
“Debt that was borrowed previously matures, and government raises new debt to refinance it. That is not new borrowing,” he added.
Oyedele maintained that the Tinubu administration had adopted a cautious borrowing strategy centred on infrastructure development, economic expansion and debt sustainability.
He said every loan obtained by the government was expected to generate economic returns that exceed its cost.
“We see debt as leverage. Every naira and every dollar borrowed should generate more value than the amount borrowed,” he said, adding that the administration remained committed to prudent fiscal management.
Meanwhile, members of the Senate Committee on Finance expressed dissatisfaction over the slow implementation of the capital component of the 2026 Appropriation Act.
The Senate Chief Whip, Senator Tahir Monguno (Borno North), described the pace of implementation as unacceptable, warning that failure to execute approved capital projects undermines legislative intent and public confidence.
