The Federal Government has dismissed claims that the administration of President Bola Ahmed Tinubu borrowed nearly ₦80 trillion within its first three years in office, attributing the increase in Nigeria’s debt profile largely to currency depreciation, debt revaluation and the recognition of existing liabilities.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the clarification on Monday while appearing before the Senate Committee on Finance to provide updates on the state of the economy.
Responding to concerns raised by lawmakers over reports that the current administration inherited a debt stock of about ₦75 trillion and subsequently added another ₦80 trillion, Oyedele said the figures had been widely misunderstood.
“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,” he said.
According to the minister, the sharp depreciation of the naira significantly increased the naira value of Nigeria’s foreign currency-denominated debt, adding more than ₦40 trillion to the country’s debt profile through accounting adjustments.
He also explained that the securitisation of the Central Bank of Nigeria’s Ways and Means advances inherited from the previous administration contributed about ₦33 trillion to the official debt stock after receiving approval from the National Assembly.
“It was not new borrowing; it was simply bringing previously existing obligations onto the official debt books,” Oyedele stated.
The minister further noted that much of the domestic borrowing undertaken by the current administration was used to refinance maturing debts rather than create new liabilities.
“Debt that was borrowed previously matures, and government raises new debt to refinance it. That is not new borrowing,” he said.
Oyedele assured lawmakers that the government remained committed to prudent debt management and sustainable borrowing practices, stressing that loans were being channelled into infrastructure projects and other productive investments aimed at growing the economy.
“This administration has been very responsible in its borrowing. We understand the concerns of Nigerians and distinguished senators, but we remain fully committed to debt sustainability,” he added.
During the session, some lawmakers expressed concerns over the pace of implementation of the capital component of the 2026 budget.
Senate Whip, Senator Tahir Monguno (APC, Borno North), warned that delays in implementing approved capital projects could have constitutional implications, while Senator Adamu Aliero (APC, Kebbi Central) also questioned the level of budget execution.
However, Chairman of the Senate Committee on Finance, Senator Sani Musa (APC, Niger East), assured lawmakers that capital projects approved in the budget would soon begin to take shape across the country.
Musa disclosed that the committee was working with the government’s economic management team to improve budget implementation and align expenditure with available revenue.
He also revealed that the government was considering reforms that would introduce performance- and priority-based budgeting, as well as a return to a system where contractors are paid based on verified execution of projects.
