By Nathaniel Zaccheaus, Abuja
The Senate on Monday questioned the Federal Government’s rising debt profile despite posting a record ₦21.6 trillion in tax revenue in the first half of 2026, with lawmakers demanding greater fiscal accountability and improved implementation of the Appropriation Act.
The concerns came as the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, dismissed claims that the President Bola Tinubu administration had borrowed between ₦75trn and ₦80trn, insisting that the government had drawn less than half of the loans approved by the National Assembly.
Speaking during an interactive session with the Senate Committee on Finance chaired by Senator Sani Musa, Oyedele attributed the sharp increase in Nigeria’s debt stock largely to exchange rate adjustments, inherited liabilities and refinancing of existing obligations rather than fresh borrowing.
“For external loans, we always require the approval of the National Assembly. What usually happens is that once the National Assembly approves a borrowing plan, many people interpret that as money already borrowed. We have not even taken half of what the National Assembly approved,” the minister said.
He explained that more than ₦40 trillion of the increase in the country’s debt profile resulted from the revaluation of existing foreign loans following the naira exchange rate reforms, while another ₦33 trillion arose from the securitisation of inherited Ways and Means advances from the previous administration.
“The actual amount this administration has borrowed is nowhere near what many people believe. Even for domestic borrowing, much of it is refinancing. Debt that was borrowed previously matures, and the government raises new debt to refinance it. That is not new borrowing,” Oyedele added.
The minister disclosed that the Federal Government generated ₦21.6 trillion in tax revenue between January and June 2026, representing a 49 per cent increase over the corresponding period in 2025, which he attributed to ongoing tax reforms, improved compliance and digitalisation of the revenue collection process.
Despite acknowledging the improved revenue performance, senators questioned why the government continued to struggle with budget implementation and capital releases.
Chairman of the Senate Committee on Finance, Senator Sani Musa, said the committee would intensify oversight of the country’s debt profile and the utilisation of import duty waivers granted by the Federal Government.
“We need to understand the true state of our foreign debt. What measures is the government taking to ensure these debts do not become an unbearable burden? We also intend to investigate whether import duty waivers were utilised strictly for the purposes for which they were approved,” Musa said.
He argued that Nigeria should migrate to a performance-based budgeting system that prioritises value for money, eliminates waste and aligns expenditure with available resources.
The session took a more critical turn when Senate Chief Whip, Senator Tahir Monguno, challenged the government over what he described as poor implementation of successive budgets despite the surge in revenue.
“If revenue performance has improved so significantly, it appears inherently contradictory that the government is still struggling to implement the budget. Where is the revenue going?” Monguno asked.
He noted that the 2025 Appropriation Act remained largely unimplemented despite its extension until September, while implementation of the 2026 budget had barely commenced.
According to him, failure to execute approved budgets undermines governance and denies Nigerians the benefits of public expenditure.
“The dividends of democracy are delivered through the implementation of the budget, particularly capital projects. If the budget is not being implemented, then the fundamental purpose of government is undermined,” he said.
Monguno warned that continued failure to implement the Appropriation Act could amount to a breach of the law with constitutional implications.
“Failure to implement an Appropriation Act amounts to a breach of the law, and such a breach is an impeachable offence,” the Senate Chief Whip declared.
He also demanded explanations over the retention of about ₦1.7 trillion from the Federation Account instead of distributing the funds to the three tiers of government.
Senator Adamu Aliero also called for greater transparency in public debt management, saying Nigerians deserved regular explanations on the country’s debt profile, especially as the government embarked on major infrastructure projects.
Defending the administration’s economic reforms, Oyedele said the economy had recorded significant improvements over the past three years, with stronger macroeconomic indicators and renewed investor confidence.
“Three years ago, our economy was on the brink of severe distress. Today, we have made significant progress. Macroeconomic fundamentals are improving, investor confidence has returned, fiscal revenues are increasing, and the economy is better positioned for sustained domestic and external growth,” he said.
He disclosed that Nigeria’s Gross Domestic Product grew by 3.8 per cent in the first quarter of 2026 compared with 3.13 per cent in the corresponding period of 2025, while external reserves had risen above $51 billion, the highest level in 17 years.
The minister defended the government’s tax incentives and import duty waivers, describing them as targeted interventions designed to support critical sectors, including defence, agriculture, manufacturing, pharmaceuticals, compressed natural gas and electric vehicles.
“Allowing tax evasion to persist amounts to taxing honest taxpayers while rewarding non-compliance. That is not the kind of country we seek to build,” he added.
At the end of the session, the committee resolved to strengthen legislative oversight of public finances, debt management and fiscal reforms to ensure greater transparency, prudent spending and effective implementation of the nation’s budgets.
