The Federal Government has dismissed claims that President Bola Tinubu’s administration borrowed about ₦80 trillion, insisting that the figures being circulated are misleading and do not reflect the country’s actual borrowing under the current administration.
Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the clarification during an interactive session with the Senate Committee on Finance at the National Assembly, where lawmakers sought explanations over Nigeria’s rising debt profile.
According to Oyedele, the Tinubu administration has not even accessed half of the external loans approved by the National Assembly, contrary to widespread public perception.
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The minister explained that much of the increase in Nigeria’s public debt resulted from the revaluation of foreign debt following the naira’s depreciation and the securitisation of Ways and Means advances inherited from the Muhammadu Buhari administration, rather than fresh borrowing.
He said Nigeria’s public debt stood at about ₦75 trillion when President Tinubu assumed office.
Following the exchange rate reforms, however, the country’s foreign debt had to be recalculated in naira terms.
“That accounting adjustment alone added more than ₦40 trillion to the public debt figure,” Oyedele said.
He added that another ₦33 trillion came from converting overdrafts previously obtained by the Federal Government from the Central Bank of Nigeria into official public debt after approval by the National Assembly.
“It was not new borrowing; it was simply bringing previously existing obligations onto the official debt books,” he explained.
Oyedele also said many Nigerians mistakenly assume that once the National Assembly approves a borrowing request, the funds have already been borrowed.
He explained that legislative approval only authorises the government to borrow up to a specified amount if necessary.
“No. In fact, we have not even taken half of what the National Assembly approved,” he said in response to questions from lawmakers.
He noted that all borrowings by the Tinubu administration comply with the Fiscal Responsibility Act, which permits borrowing only for capital projects and human development.
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Responding to concerns over continued borrowing despite improved revenue generation by the Nigeria Revenue Service and the Nigeria Customs Service, Oyedele said increased revenue does not eliminate the need for borrowing when government expenditure exceeds projected income.
He said debt servicing, implementation of the new minimum wage, salary increases and intervention programmes such as the Nigerian Education Loan Fund (NELFUND) have significantly increased government spending.
The finance minister maintained that the Tinubu administration inherited an economy that was “heading toward near collapse” but has since restored macroeconomic stability through its economic reforms.
According to him, investor confidence has improved, government revenue has increased and the economy is becoming more resilient to domestic and external shocks.
He added that although inflation remains a major concern, recent data from the National Bureau of Statistics suggests that inflation is beginning to trend downward, while the government is now shifting its focus from economic stabilisation to inclusive growth aimed at creating jobs and reducing poverty.
