The Minister of Finance and Coordinating Minister of the Economy, Mr Taiwo Oyedele, on Monday said that the nation’s debt stock being quoted by public commentators and erroneously reported by journalists was being exaggerated.
The minister, who made this remark when he appeared before the Senate Committee on Finance, said that contrary to the reports, the current administration had not borrowed up to N80 trillion being mentioned by the commentators since 2023 when President Bola Tinubu assumed office as President of the country.
Oyedele, who appeared before the committee to clarify the state of the nation’s economy, while responding to a question by Senator Adamu Aliero on alleged N80trillion debt profile incurred by the present administration in addition to N75 trillion inherited, explained that the President Bola Tinubu-led government did not borrow money near the quoted figure.
He clarified: “When this administration came into office, public debt was around N75 trillion. Many people simply compare that figure with today’s debt stock and conclude that this government has borrowed massively.
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“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 securitisation 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 the government raises new debt to refinance it. That is not new borrowing”, the minister added.
Oyedele maintained that the President Tinubu-led administration had been responsible in its borrowing, which is strictly for infrastructure and not for consumptive or frivolous purposes.
He said: “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.”
At the end of the meeting with the minister and other members of the economic team, Senator Sani Musa, said that the interaction was part of the collaboration between the Executive and the Legislative arms of government to fiscal efficiency in yearly budgets.
The lawmaker said: ”Performance and priority-based budgeting system is being looked at to replace the envelope system and also revert to the old system of payments for contractors.”
