FG debunks N80tn borrowing claims, blames debt surge on naira devaluation

…Says debt figures inflated by exchange rate revaluation, Ways and Means securitisation

…Senators raise concerns over slow implementation of 2026 capital budget

The Federal Government on Monday dismissed claims that the President Bola Tinubu administration had borrowed about N80 trillion in the last three years, insisting that Nigeria’s current debt figures have been widely misrepresented due to accounting adjustments and exchange rate movements rather than fresh borrowing.

Taiwo Oyedele, the minister of finance and coordinating minister of the economy, made the clarification while briefing the Senate Committee on Finance on the state of the nation’s economy.

Responding to concerns raised by Adamu Aliero (Kebbi Central) over reports that the Tinubu administration had added about N80 trillion to the country’s debt stock on top of the N75 trillion it inherited, Oyedele said the figures being circulated were misleading.

According to him, a substantial increase in the debt stock resulted from the revaluation of Nigeria’s foreign currency obligations following the depreciation of the naira, as well as the securitisation of the Ways and Means advances obtained by the previous administration.

“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.”

He further explained that the National Assembly-approved securitisation of the Central Bank’s Ways and Means advances also increased the official debt stock by about N33 trillion without representing new borrowing.

“Another important factor is the securitisation of the Ways and Means advances from the previous administration, which the National Assembly approved. About ₦33 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.”

Oyedele stressed that the actual borrowing undertaken by the current administration was “nowhere near” the figures being quoted, adding that much of the government’s domestic borrowing involved refinancing maturing debts rather than taking on new obligations.

“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,” he said.

The minister maintained that the Tinubu administration had adopted a cautious borrowing strategy, with loans targeted at infrastructure projects capable of stimulating economic growth.

“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.

The session, however, turned tense as lawmakers questioned the slow implementation of the capital component of the 2026 Appropriation Act.

Tahir Monguno (Borno North), the Senate Chief Whip, and Adamu Aliero expressed dissatisfaction with the pace of capital project execution, with Monguno arguing that failure to implement the budget amounted to a serious constitutional breach.

Sani Musa (Niger East), Chairman of the Senate Committee on Finance, appealed for calm, assuring lawmakers that implementation of the capital budget would soon gather momentum.

Speaking after a closed-door meeting with the minister and members of the government’s economic team, Musa said the committee and the executive had agreed on measures to improve budget implementation and strengthen revenue management.

“A performance-and-priority-based budgeting system is being looked at to replace the envelope system and also revert to the old system of payments for contractors,” he said.