The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has disclosed that only about ₦20 trillion of Nigeria’s current ₦152 trillion public debt was accumulated by the present administration, attributing the bulk of the figure to inherited liabilities and exchange rate adjustments.
Edun made the clarification on Thursday while appearing before the Senate Committee on Finance during the defence of the proposed ₦58.472 trillion 2026 budget.
According to the minister, the current debt stock largely reflects obligations incurred by previous administrations, as well as the impact of exchange rate movements on Nigeria’s foreign-denominated loans.
“Nigeria’s current debt profile of about ₦152 trillion is largely inherited,” Edun told lawmakers. “Only about ₦20 trillion is new borrowing accumulated since 2023. The rest is made up of previous obligations and exchange rate movements.”
He explained that the depreciation of the naira significantly increased the local currency value of external borrowings, thereby inflating the overall debt figure when converted from dollars to naira.
Edun assured the committee that the proposed 2026 budget is structured to drive economic expansion, boost revenue generation, and support projects capable of stimulating growth across key sectors.
“The 2026 budget prioritises growth-enhancing projects,” he said, adding that the administration remains committed to prudent debt management while implementing reforms aimed at strengthening the economy.
However, members of the Senate Committee on Finance expressed concern that many Nigerians are yet to feel the tangible benefits of ongoing economic reforms.
Chairman of the committee, Senator Sani Musa, called on the economic management team to deepen collaboration with the National Assembly to enhance budget implementation and ensure that public expenditure translates into measurable improvements in citizens’ living conditions.
The budget defence session forms part of the National Assembly’s review process ahead of deliberations on the 2026 appropriation bill.
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