Federal Government don defend Nigeria rising public debt wey don reach about N152 trillion, say the sharp increase mainly come from exchange rate adjustment and improved transparency, not because government dey borrow anyhow.
Finance Minister and Coordinating Minister of the Economy, Mr Wale Edun, talk this one on Thursday for presentation of Nigerian Economic Summit Group (NESG) 2026 Macroeconomic Outlook for Lagos.
According to Edun, Tinubu administration choose openness and fiscal discipline instead of hiding figures.
“Nigeria total public debt don reach N152 trillion, small pass $100 billion. Importantly, N30 trillion wey dem previously record as Ways and Means don now show clearly for books, while exchange rate adjustment account for most of the remaining increase, no be new borrowing,” Edun explain.
E admit say debt servicing still dey challenge, but stress say transparency don improve well well, as government still dey meet all statutory obligations.
“Despite fiscal pressure, we don pay salaries, pensions and service our debts. That show say we serious with discipline and transparency,” he add.
On 2025 Budget performance, Edun say Nigeria fiscal position still show strength even with global pressure and local challenges. According to am, fiscal deficit stand at 3.4 per cent of GDP in 2025, slightly above Fiscal Responsibility Act limit.
E say oil and gas revenue shortfall still affect earnings, but non-oil revenue don show improvement. Edun also point out say fiscal federalism reforms don help states, as many of dem now dey record budget surplus above three per cent, wey allow dem spend more on health, education and public services.
The minister say Tinubu economic reforms, though tough politically, don help stabilise the economy and prepare ground for consolidation.
“After more than two years of difficult reforms, Nigeria don reach threshold of consolidation. But consolidation need discipline and consistency. We no fit retreat,” Edun warn.
E add say distortions like fuel subsidy, preferential forex access and rent-seeking don disappear, creating fairer economic environment where productivity and innovation matter pass arbitrage.
On investor confidence, Edun say Nigeria don receive positive global signals, including exit from FATF grey list and removal from European Union high-risk list, while credit rating agencies also respond positively.
E talk say economic activity dey spread, with 27 sectors growing above three per cent, even though manufacturing and agriculture still never reach expected level. Inflation still dey challenge, but e say fight against am dey continue because inflation dey hit poor people pass.
Edun also highlight capital market improvement, say stock market capitalisation dey approach $500 billion, wey be important credibility mark globally. According to am, capital market go play bigger role in funding growth and mobilising local savings.
Looking ahead, FG project 4.68 per cent economic growth for 2026, inflation average of 16.5 per cent and exchange rate benchmark of N1,400 to the dollar. The 2026 Budget, titled “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” aim to turn macro gains into food supply, electricity, housing and jobs.
“We no go retreat from economic transformation. Our duty na to turn stability into inclusive growth wey go benefit every Nigerian,” Edun conclude.
Mixed reactions from experts
Reacting, former CIS President, Oluropo Dada, say data show FG don raise over N7 trillion from bond market in two years, meaning fresh borrowing still play role despite transparency reforms.
Another analyst, David Adonri, say recognising hidden debt na good step, but warn say continued borrowing dey worsen FG debt trap.
Former CIS President, Olatunde Amolegbe, say debt-to-GDP ratio of about 36 per cent still manageable, but caution needed when looking at debt-to-revenue ratio.
Analyst Clifford Egbomeade say Edun explanation dey consistent with accounting logic, but stress say sustainability go depend on revenue growth, disciplined spending and how FG manage servicing costs.
