FG rejects ₦80tn borrowing claims, blames Naira devaluation

The Federal Government has dismissed claims that the administration of President Bola Tinubu borrowed about ₦80 trillion in its first three years in office, insisting that the figures being circulated are misleading and largely reflect accounting adjustments rather than fresh loans.

The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, gave the clarification on Monday while briefing the Senate Committee on Finance on the state of the nation’s economy.

Responding to concerns raised by lawmakers over reports that the Tinubu administration had borrowed about ₦80 trillion in addition to the ₦75 trillion debt it inherited, Oyedele said comparisons between the country’s current debt stock and the level recorded when the administration assumed office failed to account for major economic reforms and currency depreciation.

According to him, Nigeria’s public debt stood at about ₦75 trillion when President Tinubu took office, but the depreciation of the naira significantly increased the naira value of the country’s external debt, resulting in a sharp rise in the reported debt stock.

He explained that because Nigeria reports its public debt in naira, the foreign currency component had to be revalued following the exchange rate reforms, adding that the accounting adjustment alone increased the debt figure by more than ₦40 trillion.

Oyedele also said the securitisation of the Ways and Means advances approved by the National Assembly added about ₦33 trillion to the public debt stock. He stressed that the amount did not represent fresh borrowing but the formal recognition of existing obligations.

He urged commentators and sections of the media to distinguish between new borrowing and accounting adjustments when assessing the country’s debt profile.

Members of the Senate Committee on Finance, however, expressed concern over what they described as the poor implementation of the capital component of the 2026 budget, urging the Federal Government to improve budget execution to accelerate infrastructure development and economic growth