ABUJA, Nigeria (VOICE OF NAIJA)-The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has defended the Federal Government’s borrowing under President Bola Tinubu, saying the administration has adopted a responsible borrowing strategy centred on infrastructure development and debt sustainability.
Oyedele made the remarks on Monday while appearing before the Senate Committee on Finance, chaired by Senator Sani Musa, in Abuja.
Responding to concerns raised by Senator Adamu Aliero over reports that the Tinubu administration borrowed about ₦80 trillion in addition to the ₦75 trillion it inherited, the minister explained that a large portion of the increase in Nigeria’s debt profile resulted from the revaluation of foreign loans and the securitisation of Ways and Means advances.
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.”
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The minister further explained that the securitisation of Ways and Means advances obtained under the previous administration also increased the country’s debt stock without constituting fresh borrowing.
“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.”
According to him, the failure to properly explain these developments has created the impression that the current administration borrowed far more than it actually did.
“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,” he said.
Oyedele maintained that the administration has pursued a prudent borrowing policy focused on financing infrastructure while ensuring long-term debt sustainability.
“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 added.
During the session, several lawmakers, including Senate Chief Whip Tahir Monguno and Senator Adamu Aliero, expressed concern over the slow implementation of the capital component of the 2026 budget.
Monguno reportedly described the delay as a major concern, while the committee chairman, Senator Sani Musa, assured lawmakers that the execution of capital projects would improve soon.
He added that discussions with the government’s economic team also covered plans to introduce a performance- and priority-based budgeting system to replace the current envelope budgeting model and restore the previous payment system for contractors.