The Presidency has dismissed claims circulating on social media that President Bola Tinubu’s administration accumulated ₦120 trillion in debt within its first three years, describing the figures as a misleading representation of Nigeria’s public debt records.
Dada Olusegun, the Special Assistant to the President on Social Media, addressed the controversy in a statement on Sunday, arguing that comparisons between previous administrations and the current government failed to account for changes in exchange rates, currency reforms and inherited financial liabilities.
The controversy followed the circulation of a graphic claiming that 16 previous Nigerian leaders borrowed a combined ₦46 trillion over 63 years, compared with ₦120 trillion under Tinubu.
However, Olusegun said the ₦46 trillion figure, which represented Nigeria’s debt position in late 2022, excluded ₦22.7 trillion in Central Bank of Nigeria (CBN) Ways and Means advances.
According to him, the overdrafts were not formally incorporated into the country’s public debt records until May 2023.
The presidential aide also argued that previous valuations of Nigeria’s external debt relied on an official exchange rate of about ₦448 to the dollar, which understated the naira value of the country’s foreign obligations.
He explained that the unification of exchange rates in June 2023 significantly increased the naira value of existing dollar-denominated debt without necessarily involving additional borrowing.
“When the exchange rate was unified in June 2023, the exact same dollar debt instantly looked ₦13.4 trillion larger on paper overnight without a single new dollar being borrowed,” Olusegun stated.
Citing Debt Management Office figures, the Presidency said Nigeria’s public debt increased from $113.4 billion, equivalent to approximately ₦87.38 trillion, in June 2023 to $120.93 billion, or about ₦166.79 trillion, by June 2026.
Olusegun argued that the increase represented a net rise of about $7.5 billion in dollar terms, while the much larger naira-denominated increase was driven substantially by exchange-rate adjustments and inherited CBN liabilities.
Defending the administration’s economic policies, the presidential aide also said the removal of petrol subsidies had increased allocations to state and local governments through the Federation Account Allocation Committee (FAAC).
He noted that monthly FAAC distributions rose from ₦656 billion in April 2023 to ₦2.4 trillion by September 2026.
The Presidency’s response comes amid renewed scrutiny of the Federal Government’s borrowing plans, particularly following Tinubu’s request for Senate approval of a $7.7 billion external borrowing plan to finance the 2026 budget deficit.
The latest request replaced an earlier proposal seeking approval for $20.52 billion and €1.045 billion in external borrowing.
Opposition parties, including the Nigeria Democratic Congress, have raised concerns over the government’s borrowing plans and the country’s rising debt profile.
Dear readers, we really need your support to keep on serving you with authoritative, truthful, and juicy stories everyday. For your support, please reach out to the editor @gavelinternational66@gmail.com
