The Federal Government of Nigeria has refuted widespread claims suggesting that President Bola Tinubu’s administration has secured approximately N80 trillion in fresh loans since assuming office. According to official clarifications, the massive jump in the nation’s public debt profile is primarily a result of currency fluctuations and accounting adjustments rather than a wave of new borrowing.
Speaking before the Senate Committee on Finance during an economic briefing, the Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, explained that comparing the inherited debt stock directly with current figures paints an inaccurate picture of the administration’s fiscal activities.
The Impact of Naira Depreciation on National Debt
When the current administration took the helm of affairs, Nigeria’s public debt stood at roughly N75 trillion. While critics have pointed to the subsequent rise in total debt as evidence of rapid borrowing, Oyedele clarified that foreign exchange reforms played a massive role in inflating the figures.
Because Nigeria reports its total national debt in the local currency, any drop in the value of the naira automatically increases the domestic valuation of external debts. “Following the fiscal reforms and the depreciation of the naira, the foreign currency component of our public debt had to be revalued,” Oyedele explained. He noted that this accounting adjustment alone added more than N40 trillion to the official public debt total without representing actual new cash inflows.
Securitization of Ways and Means Advances
Beyond foreign exchange volatility, the government pointed to another structural adjustment that significantly altered the debt ledger. Approximately N33 trillion was officially added to the country’s public debt registry following the National Assembly’s approval to securitize the Central Bank of Nigeria’s (CBN) Ways and Means advances.
The administration emphasized that this step was merely a formal recognition of existing financial obligations incurred previously, rather than a fresh borrowing spree by the active presidency.
Senate Raises Concerns Over Capital Project Execution
While the legislative committee reviewed these economic clarifications, lawmakers voiced strong apprehensions regarding fiscal performance. Specifically, members of the Senate Committee on Finance raised concerns over the slow and poor implementation of capital projects detailed in the 2026 budget, urging more efficient execution of capital development initiatives to stimulate tangible economic growth.