The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has dismissed claims that the President Bola Tinubu administration borrowed between N75 trillion and N80 trillion, saying the sharp rise in Nigeria’s public debt stock was largely driven by exchange rate revaluation, inherited liabilities and accounting adjustments rather than fresh borrowing.
Speaking on Monday during an economic review session organised by the Senate Committee on Finance, the minister explained that comparisons between the country’s debt profile at the start of the Tinubu administration and its current level had created a misleading impression.
According to him, Nigeria’s public debt stood at about N75 trillion when the administration assumed office, but the increase recorded since then cannot be attributed solely to new loans.
He said more than N40 trillion was added to the debt stock following the depreciation of the naira, which led to the revaluation of the country’s foreign currency-denominated obligations.
The minister also identified the securitisation of the Central Bank of Nigeria’s Ways and Means advances obtained by the previous administration as another major contributor to the increase in the debt profile.
He said about N33 trillion was added after the National Assembly approved the conversion of the advances into formal public debt.
The minister further clarified that borrowing approvals granted by the National Assembly should not be interpreted as funds already accessed by the government, noting that approved loans are often reported as though they have been fully drawn when actual disbursements occur later.
He cited the Nigerian Education Loan Fund (NELFUND) as an example of government initiatives designed to improve access to education while easing the financial burden on families.
Earlier, Senator Tahir Monguno expressed concern over the slow pace of budget implementation despite improved revenue generation by government agencies.
He argued that stronger revenue performance should translate into better execution of capital projects, noting that a significant portion of the 2025 capital budget had been rolled over into 2026.
Monguno described the failure to fully implement an Appropriation Act as a breach of the law, saying such a violation amounted to “an impeachable offence.”
He also questioned the distribution of Federation Account Allocation Committee (FAAC) revenues, seeking clarification on reports that about N1.7 trillion was retained after N3.7 trillion accrued to the Federation Account.
Also speaking, Senator Adamu Aliero alleged that while former President Muhammadu Buhari borrowed about N75 trillion, the Tinubu administration had also borrowed between N75 trillion and N80 trillion, adding that budget implementation had fallen short of expectations.
Responding, the finance minister said he was not familiar with the specific figures cited but maintained that FAAC allocations under the current administration had consistently remained above N2 trillion.
In his remarks, Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa, said the success of the administration’s economic reforms would ultimately be judged by their impact on the living conditions of Nigerians.
He acknowledged that implementing a new budgeting framework would take time but said investing one or two years in building an effective system would be worthwhile.
Musa also called for closer coordination between fiscal and monetary authorities to strengthen economic stability.
He disclosed that the National Assembly was considering decentralising some aspects of the government’s payment process while retaining oversight by the Office of the Accountant-General of the Federation to speed up payments and improve efficiency.
The committee chairman added that complaints over payment batch numbers stemmed from misunderstandings, insisting that the payment system remained operational but required further improvements.
