Tinubu did not borrow ₦120tn in 3 years - Presidency fires back at Atiku, Obi

Amidst mounting criticism over President Bola Ahmed Tinubu's administration, the Federal Government has firmly rebuffed claims that it borrowed an astronomical ₦120 trillion over just three years. Dada Olusegun, a presidential spokesperson, dismissed the allegations as "opposition propaganda machines" aimed at misrepresenting the administration's financial record.

The controversy emerged following assertions that 16 past Nigerian leaders had collectively borrowed ₦46 trillion over 63 years, while Tinubu alone had borrowed ₦120 trillion in a mere three years, despite significant gains from removing the fuel subsidy.

In response to the accusations, Olusegun provided crucial context to clarify the administration's fiscal situation. He pointed out that the ₦46 trillion figure presented in late 2022 actually contained ₦22.7 trillion in Central Bank 'Ways and Means' overdrafts, which were only officially recognized in May 2023. Further, Olusegun revealed that earlier calculations had erroneously applied an outdated exchange rate of ₦448 to $1, which understated the true magnitude of the debt by roughly ₦13.4 trillion once the correct exchange rate of over ₦700 was adopted in June 2023.

According to the Debt Management Office (DMO), the country's total debt stock reached ₦166.79 trillion by the end of June 2023, encompassing both external and domestic liabilities. At this point, Atiku Abubakar of the African Democratic Congress (ADC) and Peter Obi of the Nigeria Democratic Congress (NDC) have been leading the opposition's critique of Tinubu's borrowing practices.

Atiku had called for a halt to the National Assembly's approval of additional borrowing, while Obi urged the administration to account for the financial savings accrued from the removal of the fuel subsidy. The mounting pressure from these opposition figures has intensified as the country approaches the 2027 presidential election.

Tinubu, in his recent visits to Rivers and Akwa Ibom States, deflected criticism by questioning the opposition's focus on fiscal matters amidst efforts to combat hunger in the nation.