The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has informed the Senate that Nigeria’s current public debt of approximately N152 trillion is predominantly inherited from previous administrations, with only a fraction attributable to new borrowings under the present government.
Appearing before the Senate Committee on Finance during the defence of the proposed N58.472 trillion 2026 Appropriation Bill, Edun clarified that the bulk of the debt stock stems from past liabilities, including Ways and Means advances and significant exchange rate adjustments following currency liberalization.
“Nigeria’s current debt profile of about N152 trillion is largely inherited,” Edun stated. “Only about N20 trillion is new borrowing accumulated since 2023. The rest is made up of previous obligations and exchange rate movements.”
He further broke down the figures, noting that around N30 trillion arose from inherited Ways and Means facilities from the Central Bank of Nigeria, while another N9 trillion resulted from the revaluation of foreign-denominated debts due to naira depreciation.
According to Edun, these adjustments account for nearly half of the total debt, meaning they do not represent additional borrowing but rather accounting and forex effects.
The minister emphasized that the current administration has focused on prudent fiscal management, ending unregulated Ways and Means practices, and prioritizing growth-enhancing projects in the 2026 budget to boost revenue generation and economic expansion.
The session also saw broader discussions on fiscal challenges, including persistent delays in contractor payments, criticism of the centralized payment system, and concerns over the high cost of debt servicing amid improved but still insufficient revenues.
Committee Chairman Senator Sani Musa and other lawmakers highlighted the disconnect between reported economic progress and the hardships faced by ordinary Nigerians, urging reforms to budget implementation and payment processes for greater transparency and impact.
Edun assured the committee of the government’s commitment to disciplined borrowing subject to legislative approval and sustainable debt management to support long-term stability and growth.
The development comes amid ongoing scrutiny of Nigeria’s fiscal position, with debt servicing remaining a major drain on resources despite efforts to diversify revenue sources and curb deficit financing.
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