The federal government has refuted allegations that President Bola Ahmed Tinubu’s administration has accumulated ₦80 trillion in new debt since taking office. Minister of Finance Taiwo Oyedele addressed the Senate Committee on Finance, labeling these figures as distorted and based on a misunderstanding of how debt is calculated.
Addressing concerns from lawmakers like Senator Adamu Aliero, Oyedele clarified that the initial ₦75 trillion debt inherited by the administration has risen due to currency devaluation and accounting updates rather than fresh borrowing. The devaluation of the naira alone accounted for approximately ₦40 trillion in the recalculated debt stock, while the formal recording of previous Central Bank Ways and Means advances added another ₦33 trillion. These were pre-existing obligations, not new loans.
The minister further emphasized that much of the domestic debt identified is simply refinancing older loans as they reach maturity. He reiterated the government’s focus on sustainable borrowing, ensuring that capital is directed toward infrastructure and productive economic growth.
During the session, Senators Tahir Monguno and Aliero expressed unease regarding the delayed implementation of the capital budget. Committee Chairman Senator Sani Musa pledged to work with economic managers to accelerate project execution, noting that the government is considering a shift to performance-based budgeting to better align spending with project milestones.
