“You proposed similar reforms” – Presidency replies Peter Obi over comments on Nigeria’s debt

The presidency has pushed back against Peter Obi’s criticism of Nigeria’s rising debt profile, arguing that the increase is largely a consequence of exchange rate reforms that the former Anambra governor also advocated during the 2023 presidential campaign.

Olusegun Dada, a social media aide of President Bola Tinubu, made the argument on Tuesday while responding to Obi’s claim that the current administration had engaged in excessive borrowing without accountability.

Obi had alleged that Nigeria’s total debt had risen to about N200 trillion under Tinubu’s administration.

Responding in a post on X, Dada said the increase in the naira value of Nigeria’s debt was driven mainly by currency devaluation rather than fresh borrowings.

“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,” he said.

Dada said the Tinubu administration also inherited about N20 trillion in Ways and Means advances, which were subsequently securitised.

He added that Nigeria’s public debt figures include obligations incurred by state governments over the years.

“If tomorrow, President Tinubu decides to fix the Naira against the dollar at N500/$ and the value of our debts in Naira drops drastically, will Mr Peter Obi unequivocally agree that the President has repaid all of our debts?” he asked.

Dada said borrowing remains a common tool used by governments worldwide to finance development projects, adding that Nigeria’s debt position had remained relatively stable when measured in dollar terms.

“However, a presidential candidate believing that an administration with less than N100 trillion total budget in the last two budget cycles have borrowed almost N200 trillion is absolutely ridiculous.

“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.

“In contrast, Nigeria’s net external reserves has grown from $3bn in 2023 to around $40bn in 2026. I hope Mr Obi will do well to convert these to Naira same way he has done with our debts to show his audience how much we have grown in just three years,” he said.

He said supporters of the president would continue to challenge what they described as inaccurate narratives about the economy.

“We will continue to set the records straight at every given opportunity while allowing Mr President to focus on delivering his mandate to the good people of Nigeria,” Dada added.