Finance Minister Taiwo Oyedele says Nigeria’s rising public debt was driven by naira devaluation and inherited obligations, not fresh borrowing by the Tinubu administration.
Nigeria’s surging public debt is largely the product of naira depreciation and accounting adjustments rather than fresh borrowing by the Tinubu administration, Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele has told the Senate.
Oyedele made the clarification on Monday while briefing the Senate Committee on Finance on the state of the nation’s economy, responding to questions from Senator Adamu Aliero, representing Kebbi Central, on claims that the current administration had borrowed approximately N80 trillion on top of the N75 trillion public debt it inherited.
Exchange rate revaluation added N40 trillion to debt stock
The minister said comparing the debt stock at the start of the administration with the current figure without accounting for exchange rate movements created a fundamentally misleading picture.
“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,” he said.
“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.”
N33 trillion added through securitisation of inherited ways and means
Oyedele said the securitisation of ways and means advances inherited from the previous administration, approved by the National Assembly, accounted for a further significant addition to the recorded debt stock.
“Another important factor is the securitisation of the ways and means advances from the previous administration, which the national assembly approved,” he said.
“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. The actual amount this administration has borrowed is nowhere near what many people believe.”
The minister said much of the government’s domestic borrowing was used to refinance existing debt rather than accumulate new obligations.
“Even for domestic borrowing, much of it is refinancing. Debt that was borrowed previously matures, and government raises new debt to refinance it. That is not new borrowing,” he said.
He defended the administration’s overall approach to debt management.
“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.”
Senators criticise slow capital budget implementation
The briefing was not without friction. Senate Chief Whip Tahir Monguno, representing Borno North, and Senator Aliero both criticised the slow implementation of the capital component of the 2026 budget, with Monguno describing the failure to implement it as an impeachable offence.
Senate Committee on Finance Chairman Sani Musa sought to reassure lawmakers after a closed-door meeting with the minister and members of the economic team, saying implementation would soon gather pace.
“Performance and priority-based budgeting system is being looked at to replace the envelope system and also reverting back to old system of payments for contractors,” he said.
