Pegasus Reporters Issues on the Wing
“The presidency noted that the addition of Nigeria’s external debt figure provides further context to the discussion, highlighting the country’s overall debt situation while emphasizing the factors contributing to the public debt increase”
*Illustration image (credit: iStock images)
PEGASUS REPORTERS, LAGOS | AUGUST 31, 2024
The Special Assistant to President Tinubu on social media, Dada Olusegun, given more details about Nigeria’s debt condition under the administration of President Bola Tinubu, adding that this administration is able and committed to repaying its debt.
The SA explained that contrary to some reports that Nigeria’s debt stock increased, the nation’s debt stock decreased by 15% in dollar terms in Q1 2024.
The Special Assistant was reacting, Saturday, 31st August, in response to a report by StatiSense’ publication of the debt profile of Nigeria from the time of Shehu Shagari to the current administration of President Tinubu.
The presidential media aide explained that the increase in public debt under the current administration is largely due to economic factors, not increased borrowing. Writing in his verified X account, with the titled, ‘Debunking the Myth: Nigeria’s External Debt Under President Bola Tinubu’ Olusegun highlighted the debt profile as below.
That Nigeria’s total debt stock decreased by 15% in dollar terms in Q1 2024, contrary to claims of rising debt.
The increase in public debt is largely due to economic factors, not borrowing:
* Depreciation of the naira exchange rate (from N899.39/$ to N1,330.26/$)
* Interest rate changes
* Securitization of Ways and Means
* The current administration inherited a legacy of N22.7 trillion in outstanding Ways and Means, now being audited and securitized.
* The current Ways and Means deficit stand at N3.4 trillion, offset by operating surpluses from revenue-generating agencies.
* Nigeria’s (FG only) external debt stands at $42 billion.
* Multilateral creditors are owed $20.82bn, while China is owed $5bn.
* The federal government’s economic reforms have impacted foreign exchange and interest rates, contributing to the public debt spike.
* The government’s capacity to pay its debts is intact, with a revamped financial system.
The presidency noted that the addition of Nigeria’s external debt figure provides further context to the discussion, highlighting the country’s overall debt situation while emphasizing the factors contributing to the public debt increase.
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