Finance Minister Rejects ₦80 Trillion Borrowing Claim, Says Naira Devaluation Drove Debt Increase

The Federal Government has dismissed claims that the administration of President Bola Ahmed Tinubu borrowed ₦80 trillion within three years, insisting that a significant portion of Nigeria's rising debt profile was caused by the devaluation of the naira rather than fresh borrowing.

Speaking on the issue, the Minister of Finance explained that fluctuations in the exchange rate substantially increased the naira value of the country's existing foreign debt obligations. According to the minister, when the naira weakened against major international currencies, debts previously recorded in dollars and other foreign currencies appeared much larger when converted into naira.

The government maintained that many critics have failed to distinguish between actual new borrowing and debt increases resulting from exchange rate movements. Officials argue that the sharp depreciation of the naira following economic reforms significantly inflated the country's debt figures in local currency terms.

The clarification comes amid growing public debate over Nigeria's debt burden, fiscal sustainability, and the economic impact of recent reforms. While concerns remain over rising debt levels, government officials insist that the figures being circulated by critics do not accurately reflect the amount borrowed by the current administration.

The controversy is expected to fuel further discussions on economic policy, public finance management, and the long-term effects of currency devaluation on Nigeria's economy.