Tinubu's debt spike is math, not new borrowing, presidency faults Obi

The Nigerian presidency has refuted claims that President Bola Tinubu's administration has accumulated over N100tn in debt within three years, attributing the rise primarily to currency devaluation rather than new borrowing.

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For the umpteenth time, Nigeria’s obvious debt portfolio increase over the past three years under the administration of President Tinubu is not a function of new borrowings rather; vast majority of them are mathematical impacts of currency devaluation which you also promised to implement during your campaigns.

Dada Olusegun, Special Assistant to the President on Social Media, responded to criticisms from Peter Obi, a 2027 presidential candidate, stating that the increase in Nigeria's debt profile is a "mathematical impact of currency devaluation." Olusegun argued that a significant portion of the debt predates the current administration, including an inherited Ways and Means debt of around N20tn that was later securitized.

Olusegun further contended that Nigeria's public debt figures encompass obligations incurred by state governments and should not be solely attributed to the Federal Government. He questioned the interpretation of debt figures, explaining that exchange rate fluctuations significantly affect the naira value of external debt. He pointed out that Nigeria's debt in dollar terms has remained relatively stable, ranging from $108 billion in 2023 to $109 billion in 2026.

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In addition, this administration inherited a whopping ways and means debt of around 20trillion which was securitized to ensure swift repayment by the nation. This makes up a significant portion of the debts Mr Obi is claiming the administration has accumulated within three years.

Additionally, the presidency highlighted that the country's net external reserves have increased from approximately $3 billion in 2023 to around $40 billion in 2026. This, Olusegun asserted, provides a more accurate picture of the nation's economic health and debt levels.

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Lastly, Nigeria’s debt in dollar value has remained relatively stable, ranging from $108bn in 2023 to $109bn in 2026. This tells the true story of the country’s debt levels.