The Nigerian Government has denied claims that President Bola Tinubu’s administration borrowed about N80tn within three years.
According to the government, the figure is misleading and largely reflects accounting changes rather than new loans.
Minister of Finance and Coordinating Minister for the Economy, Mr. Taiwo Oyedele made the clarification in his submissions on the State of the Nation’s Economy to the Senate Committee on Finance.
Responding to question asked by Senator Adamu Aliero (Kebbi Central) on alleged N80trillion debt profile incurred by the present administration in addition to N75trillion inherited, the Finance Minister said the President Bola Ahmed Tinubu led government did not borrow money near the quoted figure.
The entire debt profile according to him, is exaggerated through multiple reporting by media and accounting misadjustment by those over calculating it.
He said “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.
“However, it is important to note that, 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 securitization 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 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.
“The actual amount this administration has borrowed is nowhere near what many people believe. 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.
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He added that President Tinubu led administration has been very responsible in its borrowing which are strictly for infrastructure and not for anything consumptive.
“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 stated.
However, members of the Senate Committee on Finance expressed concern over what they described as the poor implementation of the capital projects contained in the 2026 budget.
But the Chairman of the committee, Senator Sani Musa (Niger East), bailed the Minister out by assuring his colleagues that implementation of the capital components of the 2026 budget would soon be felt by all.
