Finance Minister Taiwo Oyedele has pushed back against claims that the current administration under President Bola Tinubu has incurred massive debt. Addressing the Senate Committee on Finance, Oyedele stated that reports suggesting the government borrowed N80 trillion are inaccurate and based on accounting misinterpretations.
Oyedele explained that the perceived surge in debt is primarily due to technical adjustments rather than new borrowing. Specifically, the devaluation of the naira required a revaluation of existing foreign currency debt, which added over N40 trillion to the figures. Additionally, the securitization of N33 trillion in Ways and Means advances—obligations inherited from the previous administration—was recorded as official debt, giving the appearance of new loans.
The minister clarified that much of the domestic borrowing is merely refinancing maturing debt. He emphasized that the administration remains committed to fiscal responsibility, noting that all loans are directed toward infrastructure projects intended to create long-term value. During the session, committee members discussed future budget strategies, with Chairman Sani Musa noting that the government is moving toward a performance-based budgeting system to improve the efficiency of capital project implementation.
