Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dismissed claims that President Bola Tinubu‘s administration borrowed N80 trillion. He said the sharp rise in Nigeria’s public debt mainly reflects naira depreciation, inherited obligations and accounting adjustments rather than fresh borrowing.
Oyedele spoke during an economic review session organised by the Senate Committee on Finance. He said many Nigerians misunderstood the country’s debt profile because they compared headline figures without considering the factors behind the increase.
Naira depreciation pushed debt higher
According to Oyedele, Nigeria’s public debt stood at about N75 trillion when the current administration assumed office. He said the increase recorded since then cannot be blamed solely on new borrowing.
“When this administration came into office, public debt was around N75 trillion. Many people simply compare the number before and the number now and conclude that this government has borrowed so much. That is not correct.”
Oyedele explained that the depreciation of the naira added more than N40 trillion to the country’s debt stock. The weaker exchange rate increased the naira value of Nigeria’s foreign currency obligations.
He also said the National Assembly added another N33 trillion after approving the securitisation of the Ways and Means advances the previous administration obtained from the Central Bank of Nigeria. The lawmakers later recognised the amount as part of Nigeria’s official public debt.
Borrowing approvals differ from actual loans
Oyedele warned Nigerians not to mistake borrowing approvals for money already received by the government. He said lawmakers only approve borrowing limits, while government agencies draw the loans when necessary.
He also cited the Nigerian Education Loan Fund (NELFUND) as one of the initiatives designed to improve access to education and reduce financial pressure on families.
Senators question budget implementation
Earlier, Senator Tahir Monguno criticised the slow implementation of government budgets despite improved revenue performance by federal agencies. He argued that stronger revenue collection should lead to faster execution of capital projects.
Monguno said a large share of the 2025 capital budget moved into 2026 because many projects were not completed. He described the failure to implement an Appropriation Act as a breach of the law and called it “an impeachable offence.”
The senator also questioned reports that about N1.7 trillion remained after roughly N3.7 trillion accrued to the Federation Account.
Oyedele responds to borrowing claims
Senator Adamu Aliero claimed that former President Muhammadu Buhari borrowed about N75 trillion. He also alleged that President Tinubu had borrowed between N75 trillion and N80 trillion.
Responding, Oyedele said he could not confirm those figures. However, he maintained that no Federation Account Allocation Committee (FAAC) allocation under the current administration had fallen below N2 trillion.
Senate seeks better budgeting system
Chairman of the Senate Committee on Finance, Mohammed Sani Musa, said Nigerians would judge the government’s reforms by their impact on living standards. He added that building a stronger budgeting framework would take time but remain worthwhile.
Musa also called for closer coordination between fiscal and monetary authorities. He said both policies must work together to achieve lasting economic stability.
The senator said the National Assembly was considering changes to the government’s payment process. The proposal would speed up payments while retaining oversight by the Office of the Accountant-General of the Federation.
He added that complaints about payment batch numbers stemmed from misunderstandings. According to him, the payment system remains functional but still requires improvements.
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