Nigeria's Debt Figures Inflated, Tinubu Administration Has Not Borrowed ₦80 Trillion

Nigeria's Finance Minister Taiwo Oyedele has refuted claims that President Bola Tinubu's administration has borrowed close to 80 trillion naira (approximately $50 billion USD) within its first three years. Oyedele described these figures as exaggerated, attributing them to accounting adjustments and misinterpretations of debt data.

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When this administration came into office, public debt was around ₦75 trillion. Many people simply compare that figure with today’s debt stock and conclude that this government has borrowed massively.

Appearing before the Senate Committee on Finance, Oyedele clarified that while Nigeria's public debt stood at approximately 75 trillion naira when the administration took office, subsequent increases were largely due to currency depreciation and debt revaluation. He explained that the naira's devaluation significantly impacted the value of foreign currency-denominated debt, adding over 40 trillion naira to the debt figure through accounting adjustments.

Furthermore, Oyedele noted that the securitization of the Central Bank of Nigeria's Ways and Means advances from the previous administration contributed about 33 trillion naira to the official debt stock after National Assembly approval. "It was not new borrowing; it was simply bringing previously existing obligations onto the official debt books," he stated. The minister also highlighted that a substantial portion of domestic borrowing under the current administration involved refinancing existing debts rather than incurring fresh liabilities.

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It was not new borrowing; it was simply bringing previously existing obligations onto the official debt books.

Oyedele assured lawmakers of the government's commitment to responsible borrowing, emphasizing that loan funds are directed toward infrastructure development and other productive investments. He stressed that the government views borrowing as leverage that must generate greater economic value than the amount obtained, aiming for debt sustainability.

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This administration has been very responsible in its borrowing. We understand the concerns of Nigerians and distinguished senators, but we remain fully committed to debt sustainability.