Morganable PolitcS/Governance
The minister noted that a lack of public understanding of these adjustments had led to widespread misconceptions about the scale of new borrowing by the current government
kaNo —
The Federal Government on Monday defended its borrowing strategy under President Bola Tinubu, insisting that a significant portion of Nigeria’s rising public debt is not the result of fresh loans but rather accounting adjustments, refinancing of existing obligations and legacy liabilities brought onto official records.
The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, made the clarification while appearing before the Senate Committee on Finance in Abuja, where he addressed concerns raised by lawmakers over the country’s debt profile.
Speaking before the committee chaired by Sani Musa, the minister said the current administration had adopted a disciplined and responsible borrowing approach focused on infrastructure development and long-term economic sustainability.
His comments followed concerns raised by lawmakers, including Adamu Aliero, who questioned reports suggesting that the Tinubu administration had borrowed about ₦80 trillion in addition to the ₦75 trillion debt stock it inherited.
Oyedele Rejects Claims Of Increased Debt Stock Due To Borrowing
Responding, Oyedele said such comparisons were misleading because they failed to account for major structural changes in the country’s debt profile since the administration assumed office.
“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,” he said.
“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.”he added
According to him, about ₦33 trillion was added through this process after approval by the National Assembly, but the move did not constitute fresh borrowing.
“Another important factor is the securitisation of the Ways and Means advances from the previous administration, which the National Assembly approved. It was not new borrowing; it was simply bringing previously existing obligations onto the official debt books,” he said.
The minister noted that a lack of public understanding of these adjustments had led to widespread misconceptions about the scale of new borrowing by the current government.
“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 added.
Borrowing Is A Strategic Tool For Economic Growth-Oyedele
Oyedele emphasised that the government views borrowing as a strategic tool to support economic growth, particularly in financing critical infrastructure projects.
“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 said.
Senate Chief Whip Tahir Monguno described the slow rollout of capital projects as a serious issue that needed urgent attention.
In response, Senator Musa assured the committee that efforts were underway to accelerate implementation and improve efficiency in budget execution.
He also disclosed that discussions with the economic team included plans to transition from the current envelope budgeting system to a performance- and priority-based model.
According to him, the proposed system would enhance transparency, ensure better allocation of resources and restore the previous payment framework for contractors, thereby reducing delays in project execution.
FG Set Targets For Inaugrated Board Of BOA
Meanwhile, in a related development, the Federal Government has set ambitious performance targets for the newly inaugurated board of the Bank of Agriculture, directing it to expand access to credit for farmers while enforcing strict loan recovery measures.
Kyari said the government was strengthening agricultural financing as part of efforts to boost food security and support economic diversification.
He stressed that the ongoing recapitalisation of the bank, approved by President Tinubu, must translate into tangible benefits for farmers, particularly smallholders, women and youths.
“We expect credit that reaches real farmers and real agribusinesses and every honest actor along the value chain, appraised on merit and recovered with discipline, because a development bank that does not recover its loans develops nothing,” he said.
The minister warned against excessive administrative spending, insisting that the success of the recapitalisation would be measured by the volume and impact of loans disbursed to productive sectors.
“We expect the recapitalisation, as it is completed, to translate into measurable lending to smallholders, women and youth, not into overheads. And we expect the bank to become a lean, digital, service-driven network that puts the customer first,” he added.
Kyari described the restructuring of the Bank of Agriculture as one of the most ambitious interventions in Nigeria’s agricultural financing history.
He noted that the exercise was being supervised by key government institutions, including the Bureau of Public Enterprises, the Ministry of Finance Incorporated and the Central Bank of Nigeria.
The newly inaugurated board is chaired by Muhammad Babangida, while Ayodeji Oludare Sotinrin serves as Managing Director and Chief Executive Officer.
Other members include Fatima Garba, Hakeem Oluwatosin Salami, Ka’amuna Ibrahim Khadi and five non-executive directors.
Kyari said the board was assuming office at a critical time when the bank was undergoing digital transformation aimed at improving loan appraisal, disbursement and recovery processes.
He urged the directors to align the bank’s operations with major federal government agricultural programmes, including the Special Agro-Industrial Processing Zones, the IFAD-supported Value Chain Development Programme and the World Bank-backed AGROW initiative.
The minister also emphasised the importance of strong corporate governance, urging board members to maintain transparency, avoid conflicts of interest and provide effective oversight while allowing management to handle day-to-day operations.
Responding on behalf of the board, Babangida pledged to provide strategic leadership that would reposition the bank and expand access to agricultural finance across the country.
He assured stakeholders that the board would prioritise integrity, accountability and professionalism while working closely with management, shareholders and development partners to improve operational efficiency.
The twin developments in defence of government borrowing and renewed focus on agricultural financing underscore the administration’s broader strategy to stabilise the economy while driving growth through targeted investments.
Analysts say the success of these efforts will depend largely on effective implementation, improved transparency and the government’s ability to translate policy commitments into measurable outcomes for businesses and ordinary Nigerians.
