Public Debt Figures Misunderstood, Tinubu Hasn't Borrowed N80tn, Says Oyedele

Public Debt Figures Misunderstood, Tinubu Hasn’t Borrowed N80tn, Says Oyedele
Naira Devaluation, Old Liabilities Drove Debt Increase
The minister explained that more than N40 trillion was added to the country’s debt profile following the depreciation of the naira

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has dismissed claims that President Bola Ahmed Tinubu’s administration borrowed between N75 trillion and N80 trillion, saying the sharp increase in Nigeria’s public debt is largely the result of currency revaluation and inherited liabilities rather than fresh borrowing, Eko Hot Blog reports.

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Speaking during an economic review session organised by the Senate Committee on Finance, the minister said comparisons between the country’s debt stock at the beginning of the administration and its current level fail to reflect the factors responsible for the increase.

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According to him, Nigeria’s public debt stood at about N75 trillion when the current administration assumed office, but much of the subsequent rise resulted from accounting adjustments rather than new loans.

“When this administration came into office, public debt was around N75 trillion. Many people simply compare the number before and the number now and conclude that this government has borrowed so much. That is not correct,” he said.

The minister explained that more than N40 trillion was added to the country’s debt profile following the depreciation of the naira, which increased the value of Nigeria’s existing foreign currency-denominated obligations when converted to local currency.

He also said another N33 trillion was added after the National Assembly approved the securitisation of the Central Bank of Nigeria’s Ways and Means advances obtained by the previous administration.

According to him, these factors significantly increased the country’s reported debt stock without representing fresh borrowing by the Tinubu administration.

The minister further noted that approvals granted by the National Assembly for borrowing should not be interpreted as loans already accessed, explaining that approved borrowing limits are different from actual loan disbursements.

He cited the Nigerian Education Loan Fund (NELFUND) as one of the initiatives designed to improve access to education while easing financial pressure on families.

During the session, Senator Tahir Monguno expressed concern over the pace of budget implementation despite improved revenue generation by government agencies.

He argued that stronger revenue performance should be reflected in the timely execution of capital projects, noting that a substantial portion of the 2025 capital budget was rolled over into 2026.

Monguno described the non-implementation of an Appropriation Act as a violation of the law and questioned why about N1.7 trillion was reportedly retained after approximately N3.7 trillion accrued to the Federation Account.

Senator Adamu Aliero also questioned the country’s rising debt, alleging that while former President Muhammadu Buhari borrowed about N75 trillion, the Tinubu administration had also borrowed between N75 trillion and N80 trillion.

Responding, the finance minister said he was not familiar with the specific figures cited but maintained that no Federation Account Allocation Committee (FAAC) distribution under the current administration had fallen below N2 trillion.

Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa, said the true test of the government’s economic reforms would be their impact on the welfare of Nigerians.

He called for stronger coordination between fiscal and monetary authorities to improve economic stability and also advocated reforms to speed up government payment processes while maintaining accountability.