Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has defended the Federal Government’s growing public debt profile, saying the sharp increase recorded under President Bola Tinubu’s administration was driven largely by the depreciation of the naira and accounting adjustments rather than extensive new borrowing.
Oyedele made the clarification on Monday while briefing the Senate Committee on Finance during a session on the state of the economy, following concerns raised by lawmakers over the country’s debt burden.
The discussion was prompted by Senator Adamu Aliero (Kebbi Central), who questioned reports suggesting the current administration had borrowed about ₦80 trillion, in addition to the roughly ₦75 trillion public debt inherited when it took office.
Responding to the concerns, the minister cautioned against comparing the debt figures at the start of the administration with the current debt stock without considering the impact of the naira’s depreciation against major foreign currencies.
“When this administration came into office, public debt was around ₦75 trillion. Many people simply compare that figure with today’s debt stock and conclude that this government has borrowed massively,” Oyedele said.
He explained that because Nigeria reports its public debt in naira, the sharp depreciation of the local currency significantly increased the naira value of the country’s external obligations. According to him, exchange-rate revaluation alone added more than ₦40 trillion to the nation’s debt profile.
Oyedele also identified the securitisation of the Ways and Means advances inherited from the previous administration as another major contributor. He said the exercise, which was approved by the National Assembly, added about ₦33 trillion to the official debt records but did not represent fresh borrowing.
“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,” he stated.
The minister added that a sizeable portion of the government’s domestic borrowing has been used to refinance existing debts rather than accumulate new liabilities. He maintained that the Tinubu administration’s borrowing strategy is focused on funding critical infrastructure projects and supporting long-term economic growth while ensuring debt sustainability.
“We see debt as leverage. Every naira and every dollar borrowed should generate more value than the amount borrowed,” he said.
Beyond the debt debate, senators expressed dissatisfaction with the slow implementation of the capital component of the 2026 Appropriation Act. Senate Chief Whip Tahir Monguno and Senator Aliero urged the executive to speed up project execution to improve service delivery.
Responding after a closed-door meeting with the minister and members of the economic management team, Chairman of the Senate Committee on Finance, Senator Sani Musa, said both arms of government were working to improve budget implementation. He disclosed that reforms under consideration include a shift from envelope budgeting to a performance- and priority-based budgeting system, alongside changes to the contractor payment process.
