FG Dismisses Claims of ₦80tn New Borrowing, Points to Naira Revaluation and Accounting Adjustments

The Federal Government has rejected claims that it borrowed ₦80 trillion over three years, attributing much of the rise in reported debt to currency revaluation and accounting changes rather than fresh borrowing.

Finance Minister and Coordinating Minister of the Economy Wale Edun said the administration inherited about ₦75 trillion in debt. Revaluation of foreign currency obligations following naira depreciation added more than ₦40 trillion to the reported figure without any new money being raised, while the ₦33 trillion securitisation of Ways and Means advances from the previous administration further inflated the total.

Edun said most domestic borrowing has gone toward refinancing maturing obligations rather than new debt, with proceeds directed to infrastructure and productive investment. Senators Tahir Monguno and Adamu Aliero raised concerns over weak capital budget implementation, and reforms under consideration include performance-based budgeting and a revised contractor payment framework. Committee chairman Senator Sani Musa said momentum on capital projects is building.

Source: Nigerian Observer