The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said the Federal Government has not borrowed the estimated ₦80 trillion widely cited in public discussions, arguing that much of the increase in Nigeria’s public debt reflects currency revaluation and the recognition of existing liabilities rather than fresh borrowing.
Speaking on Monday during an economic review session organised by the Senate Committee on Finance, Oyedele said comparisons between Nigeria’s debt stock at the beginning of President Bola Tinubu’s administration and its current level did not present the full picture.
“When this administration came into office, public debt was around ₦75 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.
According to the minister, more than ₦40 trillion was added to the country’s debt profile following the depreciation of the naira, which increased the naira value of Nigeria’s foreign currency-denominated debt.
He also said the securitisation of Ways and Means advances obtained by the previous administration from the Central Bank of Nigeria added about ₦33 trillion to the official debt stock after the National Assembly approved their conversion into formal public debt.
Oyedele said borrowing approvals granted by the National Assembly should not be interpreted as funds already drawn by the government, noting that approved facilities are often reported before they are fully accessed.
He cited the Nigerian Education Loan Fund (NELFUND) as an example of borrowing intended to support access to education and reduce financial pressure on households.
Earlier, Senator Tahir Monguno expressed concern over the pace of budget implementation despite improved revenue performance by government agencies.
He argued that higher revenue generation should be matched by improved implementation of government budgets and capital projects.
Monguno said a significant portion of the 2025 capital budget had been rolled over into 2026, adding that failure to implement an Appropriation Act amounted to a breach of the law.
He also questioned the distribution of Federation Account Allocation Committee (FAAC) revenue, seeking clarification over reports that about ₦1.7 trillion was retained after approximately ₦3.7 trillion accrued to the Federation Account.
Senator Adamu Aliero also raised concerns over the country’s debt profile, claiming that former President Muhammadu Buhari borrowed about ₦75 trillion while President Tinubu had borrowed between ₦75 trillion and ₦80 trillion. He added that budget implementation had fallen short of expectations.
Responding, Oyedele said he was not familiar with the specific figures cited but maintained that no FAAC allocation under the current administration had fallen below ₦2 trillion.
Meanwhile, the Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa, said the success of the government’s economic reforms would ultimately be judged by their impact on the welfare of Nigerians.
He acknowledged that implementing a new budgeting framework would take time but said establishing an effective system over one or two years would be worthwhile.
Musa also called for closer coordination between fiscal and monetary authorities, saying both policies must work together to achieve economic stability.
He disclosed that the National Assembly was considering reintroducing elements of the previous government payment system by decentralising some payment processes while retaining oversight by the Office of the Accountant-General of the Federation.
According to him, the proposed changes are intended to speed up government payments and improve administrative efficiency.
He added that complaints over requests for payment batch numbers stemmed from misunderstandings, insisting that while the current payment system was operational, it required further improvements.
