N80tn Debt Claim False, Oyedele Tells Senators

(AFRICANEXAMINER) –Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dismissed claims that President Bola Tinubu’s administration borrowed between ₦75 trillion and ₦80 trillion, saying the figures being circulated are misleading.

Speaking during an economic review session organised by the Senate Committee on Finance, Oyedele explained that the increase in Nigeria’s public debt was largely due to the revaluation of existing foreign loans after the naira’s depreciation, the recognition of inherited liabilities and other accounting adjustments, not fresh borrowing.

He said Nigeria’s public debt rose from about ₦75 trillion when the current administration took office to around ₦159 trillion, but noted that over ₦40 trillion of the increase resulted from the exchange rate adjustment on foreign currency loans.

Oyedele also said about ₦33 trillion was added after the National Assembly approved the securitisation of the Central Bank’s Ways and Means advances obtained by the previous administration.

“That was not new borrowing. It was simply bringing existing obligations onto the government’s books,” he said.

He added that the government had not drawn even half of the borrowing approved by the National Assembly and said the Ministry of Finance was preparing a document detailing approved loans, funds accessed and projects financed.

Oyedele explained that much of the government’s domestic borrowing was used to refinance maturing debts rather than create new obligations.

He said borrowing remained necessary because government expenditure still exceeded revenue, despite improvements in revenue collection.

According to him, rising debt servicing costs, the new national minimum wage, salary increases and social intervention programmes such as the Nigerian Education Loan Fund (NELFUND) have increased government spending.

During the session, Senator Tahir Monguno questioned the slow implementation of the 2025 budget despite improved revenue by government agencies. He said delayed capital releases were affecting infrastructure projects and security funding.

Monguno also raised concerns over the distribution of Federation Account Allocation Committee (FAAC) revenues and warned that failure to implement an Appropriation Act amounted to a breach of the law.

Senator Adamu Aliero also expressed concern over budget implementation, claiming that former President Muhammadu Buhari left office with about ₦75 trillion in debt while the current administration had borrowed between ₦75 trillion and ₦80 trillion. He acknowledged progress on projects such as the Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway but said many other critical roads remained unattended.

Responding, Oyedele maintained that the borrowing figures attributed to the Tinubu administration were inaccurate and explained that statutory deductions were made before FAAC revenues were shared among the three tiers of government.

Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa, said the success of the government’s economic reforms should be measured by improvements in the lives of Nigerians.

He acknowledged progress in some economic indicators but stressed that stronger budget implementation and better coordination between fiscal and monetary policies were needed.

Musa also called for Nigeria to adopt a performance- and priority-based budgeting system, saying it would improve budget implementation, reduce wasteful spending and ensure public funds delivered measurable results.