Naira Devaluation, Not Fresh Borrowing, Behind Nigeria’s Debt Spike — Finance Minister
Taiwo Oyedele, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, has dismissed claims that the Bola Tinubu administration has been on a borrowing spree, attributing the country’s ballooning debt to currency depreciation and bookkeeping adjustments.
Appearing before the Senate Committee on Finance on Monday, Oyedele pushed back against widespread criticism that the government had added nearly N80 trillion to the national debt since taking office.
“When this administration came in, public debt stood at about N75 trillion. But comparing that figure to today’s without context is misleading,” Oyedele told lawmakers.
He explained that following the naira’s free fall and the government’s foreign exchange reforms, the foreign-denominated portion of Nigeria’s debt had to be revalued in naira terms a technical adjustment that alone added over N40 trillion to the books.
N33 Trillion ‘Inherited Burden’ Also Added
The minister further revealed that the securitisation of ways and means advances borrowed from the Central Bank under the previous administration injected another N33 trillion into the official debt stock, with full approval from the National Assembly.
“That was not new borrowing. It was simply bringing existing obligations onto the books,” he clarified.
Refinancing, Not New Spending
Oyedele stressed that even domestic borrowing was largely used to refinance maturing debt not to fund fresh expenditure.
“Much of what people see as new borrowing is actually refinancing. Debt that matures is rolled over. That is standard practice, not reckless accumulation,” he said.
He reassured the Senate that the administration remains disciplined, borrowing only for infrastructure and projects that promise returns greater than the cost of the loans.
“We see debt as leverage. Every naira borrowed must generate more value,” he added.
Senators Slam Slow Budget Execution
The briefing wasn’t without friction. Senate Chief Whip Tahir Monguno and Senator Adamu Aliero took turns criticising the sluggish implementation of the 2026 capital budget, with Monguno warning that failure to execute capital projects could be grounds for impeachment.
In response, Senate Finance Committee Chairman Sani Musa assured that both the executive and legislature are working to fast-track implementation.
He revealed that the government is considering shifting from the envelope budgeting system to a performance-and-priority-based model, and may also revert to the old contractor payment system to ease bottlenecks.
Bottom Line
While Nigeria’s debt figures may look alarming, Oyedele insists the reality is far less dramatic — and far more technical. For a government battling inflation, currency collapse, and public distrust, the challenge now is not just managing debt, but managing perception.
