The Chairman of the Senate Committee on Finance, Senator Sani Musa (Niger East), has bailed out the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oloyede, from questions and issues raised by his colleagues on Nigeria’s debt profile.
This was as the Federal Government on Monday said Nigeria’s debt profile has been exaggerated by the media and accounting mis-adjustment.
The government insisted that borrowings under President Bola Ahmed Tinubu over the past three years are far below the N80 trillion widely circulated by commentators.
Oyedele made the clarifications in Abuja in his submissions on the state of the nation’s economy to the Senate Committee on Finance on Monday.
Responding to questions by Senator Adamu Aliero (Kebbi Central) on the N80 trillion debt allegedly incurred by the present administration, in addition to N75 trillion inherited, Oyedele said the Tinubu-led government did not borrow money near the quoted figure.
The entire debt profile, according to him, is exaggerated through multiple reporting by the media and accounting mis-adjustment by those over-calculating it.
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.
“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 a 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 Minister further said that the actual amount the present administration had borrowed was nowhere near what many people believed.
He said: “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.”
Oyedele added that the Tinubu-led administration had been very responsible in its borrowing, which were strictly for infrastructure and not for anything consumptive.
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.”
The Minister was, however, tackled by some members of the committee, particularly the Chief Whip of the Senate, Senator Mohammed Monguno (Borno North), on the implementation of the capital component of the 2026 Budget.
NAN reports that it was Chairman of the committee, Senator Sani Musa (Niger East), who bailed the minister out by assuring his colleagues that implementation of the capital components of the 2026 Budget would soon be felt by all and sundry.
Musa, at the end of the closed-door session the committee had with the minister and other members of the economic team, said they collaborated to make budget management flow with revenue.
“Performance and priority based budgeting systems are being looked at to replace the envelope system and also reverting back to the old system of payments for contractors,” he said.
