Did Tinubu Borrow ₦80 Trillion? Finance Minister Says No — Here’s Who He Blames

Addressing the committee, the minister said comparisons between the current debt stock and the debt level at the beginning of the administration had created a misleading impression that the government had embarked on excessive borrowing.

The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, has attributed a significant increase in Nigeria’s public debt to the depreciation of the naira, saying the rise in the country’s debt stock was largely driven by the revaluation of external loans rather than fresh borrowing.

Oyedele made the clarification on while briefing the Senate Committee on Finance on the state of the nation’s economy, following concerns by lawmakers over reports that the Bola Tinubu administration had borrowed about ₦80 trillion in addition to the approximately ₦75 trillion debt it inherited.

Addressing the committee, the minister said comparisons between the current debt stock and the debt level at the beginning of the administration had created a misleading impression that the government had embarked on excessive borrowing.

According to him, Nigeria’s public debt stood at about ₦75trillion when the Tinubu administration assumed office, but economic reforms and the sharp depreciation of the naira significantly increased the naira value of the country’s foreign debt.

“When this administration came into office, public debt was around ₦75trillion. Many people simply compare that figure with today’s debt stock and conclude that this government has borrowed massively.”

He explained that because Nigeria reports its public debt in naira, the weakening of the local currency meant that the foreign currency component of the debt had to be revalued, resulting in a substantial increase in the reported debt stock without any corresponding new borrowing.

“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,” he said.

Oyedele further stated that another major contributor to the increase in the debt stock was the securitisation of the Ways and Means advances approved by the National Assembly.

According to the minister, the exercise added about ₦33trillion to Nigeria’s public debt, stressing that the amount should not be interpreted as fresh borrowing because it represented existing obligations that were formally recognised and incorporated into the country’s debt profile.

He maintained that the figures being circulated by some commentators and reported in sections of the media did not accurately reflect the actual level of new borrowing undertaken by the current administration.

Despite the minister’s explanations, members of the Senate Committee on Finance expressed concern over what they described as the poor implementation of the capital component of the 2026 budget.

The lawmakers urged the executive to improve the execution of capital projects to ensure that budgetary allocations translate into tangible infrastructure development and economic growth across the country.