The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said much of the increase in Nigeria’s public debt since the current administration assumed office resulted from exchange-rate depreciation and accounting adjustments rather than extensive new borrowing.

Mr Oyedele spoke on Monday while briefing the Senate Committee on Finance on the state of the economy, in response to concerns by lawmakers over the country’s rising debt profile.

His remarks followed questions from Senator Adamu Aliero (Kebbi Central), who referred to claims that the President Bola Tinubu administration had borrowed about ₦80 trillion in addition to the approximately ₦75 trillion public debt it inherited.

Responding, the minister cautioned against comparing the country’s debt stock at the beginning of the administration to the current figure without accounting for the impact of naira depreciation.

“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,” Mr Oyedele said.

He explained that because Nigeria reports its public debt in naira, the depreciation of the local currency significantly increased the naira value of the country’s external debt.

According to him, the exchange-rate revaluation alone added more than ₦40 trillion to the public debt stock.

Mr Oyedele also said another major factor was the securitisation of the Ways and Means advances inherited from the previous administration, which the National Assembly approved.

He noted that the exercise brought about ₦33 trillion in previously existing obligations onto the government’s official debt records.

“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,” he said.

The minister added that a significant portion of the government’s domestic borrowing has been used to refinance maturing debt rather than to accumulate new obligations.

According to him, refinancing involves replacing existing debt with new debt to meet repayment obligations and should not be interpreted as additional borrowing.

He maintained that the Tinubu administration has adopted a cautious borrowing strategy focused on financing infrastructure and supporting long-term economic growth while keeping debt levels sustainable.

“We see debt as leverage. Every naira and every dollar borrowed should generate more value than the amount borrowed,” Mr Oyedele noted.

Budget Implementation

Beyond the debt discussion, senators expressed concern over the slow implementation of the capital component of the 2026 Appropriation Act.

Senate Chief Whip Tahir Monguno (Borno North) and Mr Aliero criticised the pace of capital project execution, stressing the need to accelerate implementation.

Responding after a closed-door meeting with the minister and members of the economic management team, Chairman of the Senate Committee on Finance, Sani Musa, assured lawmakers that implementation would improve.

Mr Musa said both the executive and the National Assembly were working to strengthen budget performance, including reviewing the current envelope budgeting approach.

According to him, the government is considering a transition to a performance- and priority-based budgeting system, alongside reforms to the contractor payment process to improve project delivery.

Nigeria’s public debt has risen sharply in recent years, reflecting a combination of fiscal deficits, exchange-rate movements and the formal recognition of previously outstanding government liabilities.

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Following the liberalisation of the foreign exchange market in 2023, the naira depreciated significantly against major international currencies, increasing the naira value of Nigeria’s external debt even without equivalent new foreign borrowing.

The Federal Government has consistently maintained that its borrowing strategy is aimed at financing critical infrastructure, supporting economic reforms, improving revenue generation, and maintaining debt sustainability. The issue has remained a subject of scrutiny as lawmakers and economic analysts continue to monitor the country’s fiscal position, debt-servicing costs, and budget implementation.