FG Clarifies Debt Allegations, Emphasizes Refinancing Strategy

Taiwo Oyedele, the Finance Coordinator and Minister of Economy, defended the Federal Government's borrowing strategy during a Senate Finance Committee meeting in Abuja. He addressed concerns raised by Senator Adamu Aliero regarding the current administration's borrowing of ₦80 trillion, which adds to the ₦75 trillion inherited debt.

Oyedele explained that the increase in Nigeria's debt stock is primarily due to the revaluation of foreign loan securities, which accounts for an additional ₦40 trillion. He emphasized that the current administration's borrowing is not new debt but a refinancing of existing obligations, which had not been properly communicated, leading to public misconceptions.

The government maintains a responsible borrowing strategy focused on infrastructure development and debt sustainability. Senator Sani Musa assured lawmakers that capital projects would be implemented soon, while Senator Tahir Monguno criticized delays in the capital component of the 2026 budget.