FG Denies Borrowing N80trn, Says Debt Figures Exaggerated

The federal government on Monday dismissed claims that the President Bola Tinubu administration has borrowed about ₦80 trillion in the last three years, describing the figure as exaggerated and a product of accounting adjustments and inaccurate public reporting.

Minister of Finance and Coordinating Minister for the Economy, Mr Taiwo Oyedele, made the clarification in his submissions on the state of the nation’s economy to the Senate Committee on Finance.

Responding to a question asked by Senator Adamu Aliero (Kebbi Central) on the alleged ₦80 trillion debt profile incurred by the present administration in addition to the ₦75 trillion inherited, the Finance Minister said the President Bola Ahmed Tinubu-led government did not borrow anywhere near the quoted figure.

The entire debt profile, according to him, is exaggerated through multiple reporting by the media and accounting misadjustments by those overcalculating it.

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 securitization 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 government raises new debt to refinance it. That is not new borrowing,” he said.

He added that the President Tinubu-led administration has been very responsible in its borrowing, which is strictly for infrastructure and not for anything consumptive.

“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 said.

He was, however, tackled by some members of the committee, particularly the Senate Chief Whip, Senator Tahir Monguno (Borno North), and Senator Adamu Aliero, on the 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.

Sani Musa, at the end of the closed-door session the committee had with the minister and other members of the economic team, said they collaborated to make budget management flow with revenue.

“Performance- and priority-based budgeting system is being looked at to replace the envelope system and also reverting back to the old system of payments for contractors,” he said.