Politics

Presidency Releases Update on Nigeria’s Total Debt Situation Under Tinubu: See Details

Published by Tope Fakinlede on August 31st, 2024.

Presidency Releases Update on Nigeria’s Total Debt Situation Under Tinubu: See Details

President Bola Tinubu

The presidency has clarified Nigeria’s debt situation under President Bola Tinubu’s administration, addressing concerns about rising debt levels.

According to the presidency, contrary to reports suggesting an increase in Nigeria’s debt stock, there was actually a 15% decrease in the nation’s debt stock in dollar terms during the first quarter of 2024.

The administration emphasized its commitment to debt repayment and financial stability. This clarification came from Dada Olusegun, Special Assistant to President Tinubu on Social Media, in response to a report by StatiSense that detailed Nigeria’s debt profile from the time of Shehu Shagari to the present administration.

Olusegun explained that the current rise in public debt is primarily due to economic factors rather than increased borrowing, and highlighted the administration’s efforts to reduce the debt profile. He assured that President Tinubu’s government is dedicated to transparent and responsible economic management.

Key points shared by Olusegun on his X account under the heading “Debunking the Myth: Nigeria’s External Debt Under President Bola Tinubu” include:

– A 15% decrease in Nigeria’s total debt stock in dollar terms during Q1 2024, contrary to claims of rising debt.

– The increase in public debt is mainly attributed to economic factors such as:

– Naira depreciation (from N899.39/$ to N1,330.26/$)

– Interest rate fluctuations

– Securitization of Ways and Means

– The current administration inherited N22.7 trillion in Ways and Means, which is now under audit and securitization.

– The current Ways and Means deficit is N3.4 trillion, balanced by surpluses from revenue-generating agencies.

– Nigeria’s external debt (Federal Government only) is $42 billion, with $20.82 billion owed to multilateral creditors and $5 billion to China.

– Economic reforms have influenced foreign exchange rates and interest rates, impacting the public debt.

– The government remains capable of meeting its debt obligations, supported by a reformed financial system.

The presidency noted that including Nigeria’s external debt figures offers a clearer perspective on the country’s overall debt situation and the factors driving recent increases in public debt.