The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on Monday defended the Federal Government’s debt profile, telling the Senate that the sharp increase in Nigeria’s public debt was largely caused by naira depreciation and the recognition of inherited liabilities, rather than fresh borrowing by the President Bola Tinubu administration.
Appearing before the Senate Committee on Finance, Oyedele dismissed claims that the current administration had borrowed about ₦80 trillion since assuming office in May 2023.
He explained that the country’s debt stock rose significantly after the depreciation of the naira, which increased the naira value of Nigeria’s foreign debts, even though the actual foreign currency obligations remained largely unchanged.
“When this administration came into office, public debt was around ₦75 trillion. Many people compare that figure with today’s debt stock and conclude that the government has borrowed massively. However, following the naira depreciation, the foreign currency component of the debt had to be revalued because Nigeria reports its debt in naira. That accounting adjustment alone added more than ₦40 trillion,” he said.
Oyedele also attributed the increase to the securitisation of the Central Bank’s Ways and Means advances granted to the previous administration, saying about ₦33 trillion was added to the official debt stock after those obligations were formally recognised.
“It was not new borrowing; it was simply bringing previously existing obligations onto the official debt books,” the minister said.
According to him, the Tinubu administration’s domestic borrowing has mainly been used to refinance existing debt rather than accumulate new liabilities.
Chairman of the Senate Committee on Finance, Senator Sani Musa, later told journalists that discussions with the minister and the government’s economic team focused on measures to speed up capital expenditure.
