Responding to the allegation on Tuesday, the Special Assistant to the President on Social Media, Olusegun Dada, said the rise in the country’s debt profile was largely driven by the depreciation of the naira rather than the accumulation of new loans.
Dada, in a post shared on his X account, maintained that a significant portion of the increase in debt figures reflected the exchange rate impact on existing foreign obligations, noting that currency devaluation had substantially altered the naira value of Nigeria’s debt stock.
He argued that the Tinubu administration inherited about N20 trillion in Ways and Means advances, which were later securitised to facilitate repayment, stressing that the amount formed part of the debt figures being attributed to the current government.
According to him, Nigeria’s total public debt also includes obligations incurred by state governments over several years, making it inaccurate to attribute the entire debt profile to the federal administration.
Dada challenged Obi’s interpretation of the debt statistics, suggesting that fluctuations in exchange rates significantly influence the naira value of debt.
He noted that if the naira were strengthened substantially against the dollar, the debt stock measured in local currency would automatically decline, even without any actual debt repayment.
The presidential aide further described as unrealistic claims that the administration borrowed nearly N200 trillion, arguing that such figures were inconsistent with the size of recent national budgets.
He stated that Nigeria’s debt in dollar terms had remained relatively stable, rising only marginally from about $108 billion in 2023 to $109 billion in 2026.
Dada also highlighted improvements in the country’s net external reserves, which he said increased from approximately $3 billion in 2023 to about $40 billion in 2026.
He reaffirmed the administration’s commitment to correcting what it considers misinformation while President Tinubu focuses on implementing his development agenda.
Obi had earlier criticised the government’s borrowing strategy, describing it as imprudent and questioning the utilisation of funds obtained through loans.
The former Anambra State governor claimed that Nigeria’s total debt had climbed to about N200 trillion and alleged that the government borrowed N11.89 trillion within the first three quarters of 2025, surpassing its planned borrowing target of N10.34 trillion.
He called for greater transparency and accountability in the management of public finances, urging the government to provide clearer explanations on the use of borrowed resources.
