Business
Naira depreciation, not fresh borrowing, drove debt surge — Oyedele
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.
READ ALSO: Senate confirms Taiwo Oyedele as minister
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.
MTN Nigeria Communications Plc has appointed five new directors to its board as part of efforts to strengthen its operations and support the company’s growth and strategic direction.
The appointees include former Etisalat Nigeria executives, Ibrahim Dikko and Boye Olusanya, who were appointed as independent non-executive directors to the board of the telecommunication company.
The telco giant also appointed corporate governance expert Fabian Ajogwu, Imoni Akpofure and Lwazi Bam as non-executive directors.
The appointments, which take effect from 1 December were disclosed in a regulatory filing signed by the company’s secretary, Uto Ukpanah, on Tuesday.
MTN Nigeria said the new directors were expected to bring their experience and expertise to strengthen the telco giant’s operations.
“The new Directors are expected to bring their wealth of experience and expertise to enhance Board operations and contribute to the Company’s growth and future direction,” MTN Nigeria said.
Profiles
Mr Dikko brings more than three decades of experience spanning banking, telecommunications, information and communications technology, and regulatory advisory.
He served as chairman of First Securities Discount House Limited from 2002 to 2012 and was vice president of regulatory and corporate affairs at EMTS Limited, which operated as Etisalat Nigeria, from 2007 to 2017.
He holds a Bachelor of Laws degree from the University of Buckingham and a Master of Laws degree from Queen Mary and Westfield College, and University of London.
Mr Dikko is a Fellow of the Society of Corporate Governance Nigeria and a Member of the Institute of Directors, Nigeria.
Boye Olusanya
Mr Olusanya, who currently leads FMN Holdings Limited, has more than 25 years of executive leadership experience across the fast-moving consumer goods, agriculture, telecommunications, technology, energy, infrastructure and financial services sectors.
He has led the strategic transformation of FMN Holdings into a vertically integrated, consumer-focused food and agro-industrial business.
MTN Nigeria said Mr Olusanya’s experience includes enterprise transformation, business restructuring, strategic acquisitions, operational turnaround and regional expansion.
Fabian Ajogwu
Mr Ajogwu is a Senior Advocate of Nigeria and professor of corporate governance at Lagos Business School. He is also the senior partner at KENNA LP and has practised law for 35 years.
He assisted the Securities and Exchange Commission in drafting Nigeria’s first Code of Corporate Governance and served on the Financial Reporting Council of Nigeria committee that worked on the National Code of Corporate Governance 2018.
Mr Ajogwu is also the founder of the Society for Corporate Governance Nigeria and has authored several books on corporate governance.
He holds a PhD in Law from the University of Aberdeen, an MBA from IESE Business School in Barcelona and law degrees from the University of Nigeria and the University of Lagos.
Imoni Akpofure
Ms Akpofure brings nearly three decades of experience in finance, infrastructure and sustainability, particularly across Sub-Saharan Africa.
Her career includes senior roles at the International Finance Corporation, CDC Group, now known as British International Investment, and KINA Advisory.
She currently serves on the boards of Africa50 and the Development Bank of Nigeria, where she brings experience in infrastructure investment, sustainable growth and corporate governance.
Lwazi Bam
Mr Bam joined MTN Group as group chief risk officer in June. Before joining the telecommunications group, he served as chief executive officer of Deloitte Africa and Deloitte Southern Africa from 2012 to 2022.
READ ALSO: Access Holdings’ nine-month profit jumps 6% to N474.2 billion
During his nearly three decades at Deloitte, he also served on the firm’s Global Executive Committee and advised organisations on mergers and acquisitions, strategy, governance and risk oversight.
Between 2022 and 2026, he served as a non-executive director on the boards of Standard Bank Group and Valterra Platinum. He currently serves on the boards of Woolworths Holdings Limited and ZEDA Limited.
Mr Bam is a chartered accountant in South Africa and completed the Advanced Management Programme at Harvard Business School.
MTN Nigeria, one of Africa’s largest providers of communications services, connects over 94 million people in communities across the country.
Launched in 2001, the telco operates in 19 markets in Africa and the Middle East, serving over 300 million people.
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