The Federal Government has firmly denied reports that President Bola Tinubu's administration borrowed nearly N80 trillion since taking office, attributing the surge in public debt largely to accounting adjustments and the devaluation of the naira rather than fresh borrowing.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, made this clarification during an economic briefing with the Senate Committee on Finance on Monday evening, July 20. Lawmakers had raised concerns over widely circulated figures suggesting the administration added approximately N80 trillion to the N75 trillion debt inherited from the previous government.
Minister explains debt increase
Oyedele told the committee that the headline figures are misleading. “When this administration came into office, public debt was around N75tn. Many people simply compare that figure with today’s debt stock and conclude that this government has borrowed massively,” he said.
The minister elaborated that the sharp depreciation of the naira significantly inflated the local currency equivalent of Nigeria's existing external debt, as national debt totals are officially reported in naira. “However, 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 N40tn to the public debt figure,” he explained.
Securitization adds N33 trillion
Oyedele further noted that approximately N33 trillion was added to the national debt balance after the National Assembly approved the securitization of Ways and Means advances. He emphasized that this process did not constitute fresh borrowing but rather formal recognition of pre-existing obligations.
According to the minister, the combination of the naira revaluation effect and the securitization of Ways and Means accounts for the bulk of the increase, leaving actual new borrowing far lower than the N80 trillion figure.
Senate committee raises budget concerns
Meanwhile, members of the Senate Committee on Finance voiced concern over what they characterized as poor implementation of capital projects outlined in the 2026 budget. The committee did not provide specific details but indicated that oversight would be intensified to ensure better execution.
The clarification from the Finance Minister comes amid ongoing scrutiny of the government's fiscal management, with opposition figures and civil society groups calling for greater transparency in debt reporting.
