The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dismissed claims that President Bola Tinubu’s administration borrowed between N75 trillion and N80 trillion, explained that the sharp increase in Nigeria’s public debt stock was largely due to the depreciation of the naira and the recognition of inherited financial obligations.
Oyedele made the clarification on Tuesday during an economic review session organised by the Senate Committee on Finance, where lawmakers examined the country’s fiscal performance, debt profile and implementation of the national budget.
According to him, comparing Nigeria’s debt stock at the beginning of the Tinubu administration with the current figure without considering exchange rate adjustments and inherited liabilities gives a misleading impression.
“When this administration came into office, public debt was around N75 trillion. Many people simply compare the number before and the number now and conclude that this government has borrowed so much. That is not correct,” he said.
He explained that over N40 trillion was added to the country’s debt profile following the depreciation of the naira, which increased the naira value of Nigeria’s existing foreign currency-denominated loans.
Oyedele also noted that about N33 trillion was added to the official debt stock after the National Assembly approved the securitisation of the Ways and Means advances obtained by the previous administration from the Central Bank of Nigeria.
He further clarified that borrowing approvals granted by the National Assembly should not be mistaken for actual loans already drawn by the Federal Government, noting that approved facilities are often accessed over time.
As an example, he cited the Nigerian Education Loan Fund (NELFUND), saying it was established to expand access to education while easing financial pressure on Nigerian families.
During the session, members of the Senate Committee on Finance expressed concerns over the pace of budget implementation despite improved revenue generation by government agencies.
Senator Tahir Monguno said it was unacceptable for capital projects to suffer delays when revenue agencies were surpassing their collection targets. He observed that a substantial portion of the 2025 capital budget had been rolled over into the 2026 fiscal year.
Monguno argued that failure to fully implement an Appropriation Act amounted to a breach of the law, describing it as “an impeachable offence.” He also sought explanations over the distribution of Federation Account Allocation Committee (FAAC) revenues, questioning why about N1.7 trillion was reportedly retained after approximately N3.7 trillion accrued to the Federation Account.
Also speaking, Senator Adamu Aliero claimed that while former President Muhammadu Buhari borrowed about N75 trillion, President Tinubu had borrowed between N75 trillion and N80 trillion, adding that budget implementation remained below expectations.
Responding, Oyedele said he was not familiar with the specific figures cited but maintained that no FAAC allocation under the current administration had fallen below N2 trillion.
Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa, said the success of the Federal Government’s economic reforms would ultimately be measured by their impact on the welfare of Nigerians.
He called for stronger coordination between fiscal and monetary authorities to ensure economic stability and disclosed that the National Assembly was considering a new budgeting framework to improve efficiency and reduce recurring expenditure challenges.
Musa also revealed plans to streamline government payment processes by decentralising some procedures while retaining oversight by the Office of the Accountant-General of the Federation. According to him, the proposed reforms would accelerate payments, improve efficiency and address concerns surrounding payment documentation and batch numbers.
