.Says it has not borrowed anything near N80trillion being bandied
.As Senators lament non-implementation of 2026 budget
By Henry Umoru
ABUJA- THE Federal Government of Nigeria has declared that the Nation’s debt profile is exaggerated, as monies borrowed under President Bola Ahmed Tinubu within the last three years are nowhere near the N80 trillion being bandied by public commentators and erroneously reported by Journalists.
Speaking in Abuja on Monday when he appeared before the Senator Sani Musa, APC, Niger East-led Senate Committee on Finance, Minister of Finance and Coordinating Minister for the Economy, Taiwo Oyedele said that the entire debt profile is exaggerated through multiple reporting by media and accounting misadjustment by those overcalculating it.
The Minister appeared to clarify the State of the Nation’s Economy.
Responding to a question asked by Senator Adamu Aliero, APC, Kebbi Central, on alleged N80trillion debt profile incurred by the present administration in addition to N75trillion inherited, Taiwo Oyedele explained that the President Bola Tinubu-led government did not borrow money near the quoted figure.
He said, “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.
“However, it is important to note that, following the reforms and the depreciation of the naira, the foreign currency component of our public debt had to be revalued because Nigeria reports its debt in naira. That accounting adjustment alone added more than ₦40 trillion to the public debt figure.
“Another important factor is the securitisation of the Ways and Means advances from the previous administration, which the National Assembly approved. About ₦33 trillion was added to the public debt through that process. It was not new borrowing; it was simply bringing previously existing obligations onto the official debt books.
“These factors have not always been properly explained, which is why the reported public debt appears much larger.
“The actual amount this administration has borrowed is nowhere near what many people believe. Even for domestic borrowing, much of it is refinancing. Debt that was borrowed previously matures, and the government raises new debt to refinance it. That is not new borrowing.”
The Minister, who noted that the President Tinubu-led administration has been very responsible in its borrowing, which is strictly for infrastructure and not for anything consumptive, said, “This administration has been very responsible in its borrowing. We understand the concerns of Nigerians and of the distinguished senators, but we remain fully committed to debt sustainability.
“We see debt as leverage. Every naira and every dollar borrowed should generate more value than the amount borrowed.”
He was, however, tackled by some members of the committee, particularly the Whip of the Senate, Senator Tahir Monguno ( Borno North) and Senator Adamu Aliero, on non-implementation of the capital component of the 2026 budget, which according to Monguno, constitutes an impeachable offence.
But the Chairman of the committee, Senator Sani Musa ( Niger East), bailed the Minister out by assuring his colleagues that implementation of the capital components of the 2026 budget would soon be felt by all and sundry.
At the end of the door session meeting with the Minister and other members of the economic team, Senator Sani Musa, who explained that they collaborated to make budget management flow with revenue, said, ” Performance and priority-based budgeting system is being looked at to replace the envelope system and also revert to the old system of payments for contractors.”
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