Tinubu didn’t borrow anywhere near N80tn, FG tells Senate

The Federal Government on Monday told the Senate that Nigeria’s public debt figures had been exaggerated, insisting that the Tinubu administration had not borrowed anywhere near the N80tn being circulated by public commentators and reported in some sections of the media.

The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, made the clarification when he appeared before the Senate Committee on Finance to defend the state of the nation’s economy.

He was responding to a question from Senator Adamu Aliero (Kebbi Central) on reports that the current administration had added about N80tn to the N75tn debt it inherited from the previous government.

Oyedele said the impression of massive new borrowing was largely the result of accounting adjustments and repeated reporting of debt figures without adequate explanation.

He said, “When this administration came into office, public debt was around ₦75tn. 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 ₦40tn 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 ₦33tn 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.”

The minister added that the Tinubu administration had adopted a cautious borrowing strategy focused on infrastructure and other productive sectors rather than recurrent expenditure.

According to him, “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.”

Despite the explanation, some lawmakers faulted the pace of implementation of the capital component of the 2026 budget.

The Senate Chief Whip, Senator Tahir Monguno (Borno North), and Senator Aliero expressed concern that delays in releasing capital funds could undermine budget performance.

Monguno reportedly described non-implementation of the capital component of the budget as a serious constitutional issue.

However, the Chairman of the Senate Committee on Finance, Senator Sani Musa (Niger East), defended the economic team and assured lawmakers that implementation of the capital projects would soon become evident across the country.

After a closed-door session with the minister and members of the economic team, Musa said the committee was working with the executive to ensure that budget management aligned with available revenue.

He said, “Performance and priority based budgeting system is being looked at, to replace the envelope system and also reverting back to old system of payments for contractors.”

The Federal Government has repeatedly defended its borrowing under President Bola Tinubu, arguing that much of the increase in the debt stock reflects exchange rate movements and the formal recognition of liabilities inherited from previous administrations rather than fresh loans.

The issue has remained a major point of debate amid concerns over rising debt servicing costs and the impact of economic reforms on the country’s fiscal position.