The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, on Monday defended the Federal Government’s borrowing under President Bola Tinubu, saying the administration had adopted a responsible borrowing strategy focused on infrastructure development and debt sustainability.

According to Vanguard, the Minister of Finance and Coordinating Minister of the Economy, Oyedele, stated this while appearing before the Senate Committee on Finance chaired by Senator Sani Musa in Abuja.

Responding to concerns raised by Senator Adamu Aliero over reports that the current administration borrowed about ₦80 trillion in addition to the ₦75 trillion it inherited, the minister said much of the increase in Nigeria’s debt stock resulted from the revaluation of foreign loans and the securitisation of Ways and Means advances.

He said, “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.

“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.”

The minister added that the securitisation of Ways and Means advances obtained under the previous administration also increased the country’s debt stock without amounting to fresh borrowing.

“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.”

He said these developments had not been properly explained, leading many Nigerians to believe the Tinubu administration had borrowed significantly more than it actually did.

“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,” he said.

According to him, the administration had maintained a responsible borrowing strategy focused on infrastructure development.

“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,” he added.

During the session, some lawmakers, including Senate Chief Whip Tahir Monguno and Senator Adamu Aliero, criticised the slow implementation of the capital component of the 2026 budget.

Monguno reportedly described the delay as a serious issue, while the Chairman of the committee, Senator Sani Musa, assured lawmakers that implementation of capital projects would soon improve.

He added that discussions with the economic team also focused on introducing a performance- and priority-based budgeting system to replace the envelope budgeting approach and restore the previous payment system for contractors.