Nigeria’s Debt Figures Exaggerated, Tinubu Government Didn’t Borrow ₦80tn — Finance Minister

The Federal Government has rejected widespread claims that President Bola Ahmed Tinubu’s administration has borrowed about ₦80 trillion in less than three years, insisting that the country’s rising public debt has been significantly overstated due to accounting adjustments and the revaluation of foreign debt.

Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, made the clarification on Monday while appearing before the Senate Committee on Finance during discussions on the state of the nation’s economy.

Responding to concerns raised by Senator Adamu Aliero (Kebbi Central) over reports that the Tinubu administration had added about ₦80 trillion to the nation’s debt on top of the roughly ₦75 trillion inherited from the previous government, Oyedele said such conclusions were based on a misunderstanding of how Nigeria's debt figures are calculated.

According to the minister, comparing the country's current debt stock with what existed when the administration assumed office without considering exchange rate movements and other accounting adjustments creates a misleading picture.

He explained that when the present administration took office, Nigeria's public debt stood at about ₦75 trillion, but subsequent reforms and the depreciation of the naira required the foreign currency component of the country's debt to be revalued in naira terms.

Oyedele said that adjustment alone added more than ₦40 trillion to the reported debt stock, even though it did not represent fresh borrowing.

He also pointed to the securitisation of the Ways and Means advances obtained by the previous administration from the Central Bank of Nigeria, noting that the National Assembly had approved bringing those obligations into the country's official public debt records.

According to him, the process added about ₦33 trillion to the debt profile, but stressed that it merely recognised pre-existing liabilities rather than creating new debt.

“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,” 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 ₦40 trillion to the public debt figure.

“Another important factor is the securitisation of the Ways and Means advances from the previous administration, which the National Assembly approved. About ₦33 trillion was added to the public debt through that process. It was not a new borrowing; it was simply bringing previously existing obligations onto the official debt books.”

The minister maintained that the actual amount borrowed by the Tinubu administration was far below the figures widely circulated in public discourse.

He further explained that a significant portion of domestic borrowing involves refinancing maturing obligations rather than raising new 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.

Oyedele also defended the administration's borrowing strategy, saying the government has remained disciplined by focusing loans on infrastructure development rather than recurrent expenditure or consumption.

“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.

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

During the session, some members of the Senate Committee questioned the pace of implementation of the capital component of the 2026 budget, with the Chief Whip of the Senate, Senator Mohammed Monguno (Borno North), raising concerns over project execution.

The Chairman of the Committee, Senator Sani Musa (Niger East), however, assured lawmakers that implementation of capital projects would soon become more visible across the country.

Following a closed-door meeting with the minister and members of the government's economic management team, Musa disclosed that efforts were ongoing to improve budget implementation through reforms aimed at strengthening revenue performance and expenditure management.

According to him, the government is considering replacing the existing envelope budgeting system with a performance- and priority-based budgeting framework, while also reviewing payment processes for contractors to improve project delivery.

The Senate committee's engagement comes amid growing public scrutiny of Nigeria's debt profile and the government's fiscal strategy as it seeks to balance infrastructure financing with long-term debt sustainability.