The Federal Government (FG) has defended the increase in Nigeria’s public debt under President Bola Tinubu, insisting that much of the rise reflects accounting adjustments, debt refinancing and the securitisation of inherited liabilities rather than fresh borrowing.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the clarification on Monday while appearing before the Senate Committee on Finance chaired by Senator Sani Musa in Abuja, following concerns raised by lawmakers over the country’s growing debt profile.
Responding to questions from Senator Adamu Aliero, who referenced reports suggesting the current administration had borrowed about ₦80 trillion in addition to the approximately ₦75 trillion debt inherited in 2023, Edun said such comparisons fail to account for key fiscal and accounting developments.
According to the minister, one of the biggest contributors to the increase in Nigeria’s debt stock was the revaluation of the country’s foreign debt following the depreciation of the naira.
He explained that because Nigeria reports its public debt in naira, the sharp depreciation of the local currency significantly increased the naira value of existing foreign loans without the government contracting new external debt.
Edun also pointed to the securitisation of Ways and Means advances obtained under the previous administration, noting that the National Assembly had approved converting about ₦33 trillion of those Central Bank advances into formal public debt.
According to him, the exercise merely recognised obligations that already existed on the government’s balance sheet and should not be interpreted as fresh borrowing.
The minister further explained that much of the government’s domestic borrowing consists of refinancing maturing obligations rather than increasing the country’s overall debt burden.
He maintained that the Tinubu administration remains committed to prudent debt management and sustainable borrowing, stressing that loans are being directed towards infrastructure and projects capable of generating economic returns.
Edun said the government views borrowing as a tool for economic development, provided every loan delivers value that exceeds its cost.
During the committee session, lawmakers, including Senate Chief Whip Tahir Monguno, expressed concern over the slow implementation of the capital component of the 2026 budget.
Committee Chairman Senator Sani Musa assured senators that implementation of capital projects would improve, adding that discussions were underway to introduce a performance- and priority-based budgeting system while restoring the previous payment framework for contractors.
The clarification comes amid sustained public debate over Nigeria’s debt profile and the government’s fiscal reform agenda.
