Nigeria's Debt Increase Linked to Naira Depreciation

On Monday, Finance Minister Taiwo Oyedele addressed the Nigerian Senate Finance Committee regarding the sharp increase in the nation's debt profile, attributing it mostly to the depreciation of the naira rather than new borrowing. Oyedele clarified that the federal government’s domestic borrowing is aimed at refinancing existing debt rather than accumulating new obligations.

He responded to Senator Adamu Aliero's claims that the current administration has borrowed an additional ₦80 trillion on top of the ₦75 trillion public debt inherited from the previous administration. Oyedele emphasized that comparing debt figures without accounting for exchange rate movements can be misleading.

He noted that the public debt now stands at around ₦115 trillion, with ₦40 trillion attributed to the naira's depreciation. The minister assured that the Tinubu administration is adopting a prudent borrowing strategy focused on infrastructure and long-term economic growth.

Senator Tahir Monguno criticized the slow implementation of the capital component of the 2026 budget, while Senator Sani Musa assured that the implementation would soon gather pace.