The Federal Government of Nigeria has dismissed claims that the administration of President Bola Ahmed Tinubu has borrowed close to ₦80 trillion since assuming office, describing such figures as exaggerated, misleading, and resulting from accounting adjustments, currency revaluation, and misinterpretation of official debt data.
In a presentation before the Senate Committee on Finance, chaired by Senator Sani Musa (APC, Niger East), the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, provided a detailed clarification on the nation’s debt stock.
“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 stated.
The Minister explained that significant portions of the reported increase stem from non-new borrowing factors: Currency depreciation and revaluation: The depreciation of the naira has substantially increased the naira equivalent of Nigeria’s foreign currency-denominated debt, adding more than ₦40 trillion through necessary accounting adjustments.
Securitisation of Ways and Means: Approximately ₦33 trillion was added following the National Assembly’s approval to securitise Central Bank of Nigeria Ways and Means advances from the previous administration. “It was not new borrowing; it was simply bringing previously existing obligations onto the official debt books,” Oyedele emphasized.
Refinancing of maturing debts: Much of the domestic borrowing represents the rollover and refinancing of existing obligations rather than fresh liabilities.
Oyedele assured the Senate Committee and Nigerians that the Tinubu administration has maintained responsible borrowing practices, directing all loans toward infrastructure development and productive investments that generate economic value exceeding the cost of borrowing.
“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 said. “We see debt as leverage. Every naira and every dollar borrowed should generate more value than the amount borrowed.”
The Federal Government remains focused on prudent fiscal management's, enhanced revenue generation, and strategic investments to ensure long-term debt sustainability while driving economic growth and development for all Nigerians.