Oyedele says naira depreciation added over n40 trillion to debt figure
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has dismissed claims that the Tinubu administration borrowed about ₦80 trillion since assuming office, saying the sharp increase in Nigeria’s public debt is largely the result of naira depreciation and accounting adjustments, not fresh borrowing.
Oyedele made the clarification on Monday while appearing before the Senate Committee on Finance to brief lawmakers on the state of the nation’s economy.
Responding to concerns raised by Senator Adamu Aliero of Kebbi Central over the country’s growing debt profile, the minister said many Nigerians were comparing the current debt stock with what the administration inherited without considering the impact of exchange rate changes.
According to him, when President Bola Tinubu took office, Nigeria’s public debt stood at about ₦75 trillion. However, after the naira lost value following economic reforms, the foreign debt component had to be revalued because Nigeria records its debt in naira.
Oyedele explained that the revaluation alone added more than ₦40 trillion to the country’s total public debt, giving the impression that the government had borrowed heavily.
He also said the securitisation of the Ways and Means advances inherited from the previous administration contributed significantly to the increase in the debt figure.
The minister further explained that a large part of the Federal Government’s domestic borrowing was used to refinance existing loans rather than take on new debt.
According to him, the Tinubu administration has adopted a careful borrowing strategy focused on funding critical infrastructure, supporting economic reforms and promoting long-term growth instead of accumulating unnecessary debt.
His comments come amid growing public concern over Nigeria’s rising debt profile and increasing pressure on the government to improve revenue generation while managing the country’s financial obligations.
The clarification is expected to fuel further debate over the true state of Nigeria’s public finances and the impact of ongoing economic reforms on the nation’s debt burden.
IBN NEWS will continue to monitor developments and provide updates on Nigeria’s economy and public finance.
