How devaluation increased Nigeria’s debt profile — Oyedele

Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele has attributed the increase in Nigeria’s debt profile to devolution noting that figures often quoted are exaggerated.

Oyedele made this known when he appeared before the Senate Committee on Finance, chaired by Senator Sani Musa (APC, Niger East), to provide updates on the economy.

Addressing reports that the current administration inherited a debt profile of about ₦75 trillion and subsequently added another ₦80 trillion, he explained that while Nigeria’s public debt stood at roughly ₦75 trillion when the administration assumed office, subsequent increases were largely driven by currency depreciation, debt revaluation, and the formal recognition of existing obligations.

“When this administration came into office, public debt was around ₦75 trillion. Many people simply compare that figure with today’s debt stock and conclude that this government has borrowed massively,” Oyedele said.

He explained that the depreciation of the naira significantly increased the local currency value of Nigeria’s foreign currency-denominated debt, adding more than ₦40 trillion to the headline figure through accounting adjustments alone.

According to him, the securitisation of the Central Bank of Nigeria’s Ways and Means advances from the previous administration also added about ₦33 trillion to the official debt stock following approval by the National Assembly.

“It was not new borrowing, it was simply bringing existing obligations onto the official debt books,” he said.

Oyedele added that a significant portion of domestic borrowing under the current administration involved refinancing existing debts rather than incurring fresh liabilities.

“When previously borrowed debt matures, the government raises new debt to refinance it. That is not new borrowing,” he explained.

The minister assured lawmakers that the government remains committed to responsible borrowing, stressing that loan proceeds are being directed toward infrastructure development and other productive investments.

“This administration has been very responsible in its borrowing. We understand the concerns of Nigerians and distinguished senators, but we remain fully committed to debt sustainability,” he said.

He added that the government views borrowing as leverage that must generate greater economic value than the principal amount obtained.

Meanwhile, some Senators expressed concern over the slow implementation of the capital component of the 2026 budget.

Senate Whip Tahir Monguno (APC, Borno North) warned that failing to execute approved appropriations could carry constitutional implications.

Senator Aliero also echoed similar concerns regarding the pace of budget execution.

However, the Chairman of the Senate Committee on Finance, Senator Sani Musa, assured lawmakers that capital spending would soon begin to take effect nationwide.

Musa stated that the committee is working with the economic management team to improve budget implementation and align expenditure with available revenue.

He disclosed that the government is considering a transition toward performance- and priority-based budgeting to replace the existing envelope system, alongside a return to paying contractors based on verified project execution.