FG Clarifies N80tn Debt Increase Due to Accounting Adjustments

The Nigerian government, under President Bola Tinubu, addressed concerns regarding the reported increase in public debt to N80 trillion, clarifying that this figure is largely a result of accounting adjustments related to exchange rate changes and the recognition of old obligations. Finance Minister Wale Edun explained during a Senate committee appearance that the current debt stock includes N75 trillion inherited from previous administrations, and the increase is not due to massive new borrowing.

He noted that the depreciation of the naira has significantly affected the valuation of Nigeria's foreign debt. Edun emphasized that the administration's borrowing policy is responsible, aiming to channel loans towards infrastructure and productive sectors rather than recurrent expenditures.

Despite reassurances, Senate members expressed concerns about the slow implementation of the 2026 budget, particularly regarding capital projects. The government is seeking approval for external borrowing of $21.5 million and $15 billion to finance infrastructure projects.