The Federal Government has rejected reports that the administration of President Bola Tinubu has incurred about N80tn in fresh public borrowing, describing the figure as misleading.
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 provide explanations on the state of the nation’s economy.
Oyedele was responding to questions from Senator Adamu Aliero, representing Kebbi Central, concerning reports that the current administration had added approximately N80tn to the N75tn public debt inherited from the previous government.
The Finance Minister explained that the apparent increase in the country’s debt stock should not be interpreted simply as evidence of massive new borrowing.
According to him, part of the increase resulted from accounting adjustments and the revaluation of Nigeria’s foreign currency-denominated debt following the depreciation of the naira.
He noted that Nigeria reports its public debt in naira. Consequently, when the value of the domestic currency changes significantly against foreign currencies, the naira value of existing foreign currency debt also changes.
“When this administration came into office, public debt was around N75tn. Many people simply compare that figure with today’s debt stock and conclude that this government has borrowed massively,” Oyedele said.
He explained that the comparison does not fully capture the factors responsible for changes in the reported debt stock.
The minister stressed the importance of examining the composition of the debt and understanding the impact of foreign exchange movements before reaching conclusions about new borrowing by the government.
The clarification comes amid growing public concern over Nigeria’s debt levels and the country’s ability to manage its financial obligations.
Public borrowing has remained a major subject of economic debate, particularly as the government seeks to finance infrastructure, support economic reforms and meet its fiscal obligations.
The government’s explanation is therefore expected to contribute to the ongoing debate over the sustainability of Nigeria’s public finances.
While the Federal Government maintains that the N80tn figure does not represent fresh borrowing by the Tinubu administration, concerns remain over the broader implications of rising debt servicing costs and the impact of currency movements on the country’s financial position.
The Senate Committee on Finance is expected to continue its scrutiny of the nation’s economic and fiscal position as lawmakers assess government revenues, expenditure and debt management.
The development highlights the importance of greater public understanding of Nigeria’s debt figures, particularly the distinction between actual new borrowing and increases in the naira value of existing foreign currency obligations.
As the government continues implementing its economic reforms, the management of public debt and the strengthening of government revenue will remain critical to maintaining fiscal stability and supporting sustainable economic growth.
