Oyedele Defends Rising Debt Stock, Says Naira Devaluation — Not Fresh Borrowing — Drove Surge

Oyedele Defends Rising Debt Stock, Says Naira Devaluation — Not Fresh Borrowing — Drove Surge

ABUJA — Taiwo Oyedele, minister of finance and coordinating minister of the economy, has defended the sharp rise in Nigeria's public debt, arguing that the increase was driven largely by the depreciation of the naira and accounting adjustments rather than fresh borrowing by the Bola Tinubu administration.

Speaking on Monday while briefing the Senate Committee on Finance on the state of the economy, Oyedele dismissed claims that the current administration had borrowed about N80 trillion in addition to the N75 trillion debt it inherited upon assuming office.

Responding to concerns raised by Adamu Aliero, senator representing Kebbi Central, the minister said a comparison of the country's debt stock at the start of the administration with the current figure without factoring in exchange rate movements presents a distorted 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," Oyedele said.

"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 N40 trillion to the public debt figure."

Oyedele also attributed the increase in the debt stock to the securitisation of the Ways and Means advances inherited from the previous administration, describing it as an accounting exercise rather than new borrowing.

"Another important factor is the securitisation of the Ways and Means advances from the previous administration, which the National Assembly approved. About N33 trillion was added to the public debt through that process," he said.

"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 further explained that a significant portion of the government's domestic borrowing was used to refinance maturing obligations rather than accumulate fresh debt.

"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 maintained that the Tinubu administration's borrowing strategy remains focused on financing critical infrastructure and supporting long-term economic growth while keeping debt at sustainable levels.

"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," Oyedele said.

"We see debt as leverage. Every naira and every dollar borrowed should generate more value than the amount borrowed."

The briefing also shifted attention to the pace of implementation of the capital component of the 2026 budget, with lawmakers expressing concern over delays.

Tahir Monguno, senate chief whip and senator representing Borno North, alongside Aliero, criticised the slow execution of capital projects, with Monguno warning that failure to implement the capital budget could amount to an impeachable offence.

Responding, Sani Musa, chairman of the Senate Committee on Finance, assured lawmakers that implementation would accelerate following consultations between the committee, the finance ministry and the broader economic management team.

Musa disclosed that the government is considering replacing the current envelope budgeting approach with a performance- and priority-based budgeting system, while also reviewing the payment framework for contractors to improve project delivery.