The Federal Government has rejected claims that the President Bola Tinubu administration incurred about N80tn in fresh public debt, explaining that much of the increase in Nigeria’s debt figures resulted from accounting adjustments and inherited financial obligations.

Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, gave the clarification on Monday while appearing before the Senate Committee on Finance to discuss the state of the economy.

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Oyedele was responding to questions from Senator Adamu Aliero (Kebbi Central) over reports that the current administration had added about N80tn to the N75tn debt stock inherited from the previous government.

The minister said the comparison between Nigeria’s debt figures at the beginning of the administration and current levels had created a misleading impression because some increases were not the result of new borrowing.

“When this administration came into office, public debt was around N75tn. 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 affected the reported value of foreign currency-denominated debt because Nigeria records its public debt in naira.

According to him, currency revaluation contributed more than N40tn to the increase in the debt figure.

Oyedele also cited the securitisation of Ways and Means advances from the previous administration as another major factor, saying the process added about N33tn to official debt records after approval by the National Assembly.

He stressed that the move represented the formal recognition of existing obligations rather than new loans taken by the current government.

“The actual amount this administration has borrowed is nowhere near what many people believe,” Oyedele said, adding that a significant portion of domestic borrowing involved refinancing existing obligations.

The finance minister said the government had adopted a cautious borrowing approach, focusing on infrastructure and productive investments rather than funding routine expenses.

“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,” he said.

Oyedele added that borrowing should create value greater than the cost of repayment, describing debt as a tool that must be managed carefully.

During the session, some lawmakers raised concerns about delays in implementing the capital component of the 2026 budget.

Senator Tahir Monguno (Borno North) and Senator Adamu Aliero expressed concerns that slow release of funds could affect the delivery of planned projects.

Monguno reportedly described delays in capital budget implementation as a serious constitutional concern.

However, Chairman of the Senate Committee on Finance, Senator Sani Musa (Niger East), defended the economic team and said efforts were ongoing to improve budget implementation.

After a closed-door meeting with the minister and members of the economic team, Musa said lawmakers were working with the executive to ensure better alignment between budget priorities and available revenue.

He said a performance-based and priority-focused budgeting system was being considered to improve government spending and contractor payments.

The debate over Nigeria’s debt profile continues amid concerns about debt servicing costs, inflation pressures and the broader impact of economic reforms on households and businesses.

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The Federal Government has maintained that improved transparency around debt figures is necessary to provide a clearer picture of the country’s financial position.