President Bola Tinubu’s claim during his October 1 speech, that his administration has cleared the N30 trillion Ways and Means debt inherited from the previous government has been revealed as misleading.
Recall that in his Independence Day speech, President Bola Tinubu claimed that his administration cleared the N30 trillion Ways and Means debt inherited from the previous government. stating that the debt was eliminated, and the debt-service ratio reduced from 97% to 68%, while maintaining foreign reserves at $37 billion.
However, a report by the Joint Senate Committee on Banking, Insurance and Other Financial Institutions, Finance, National Planning, Agriculture and Appropriation has cast doubts on the exact amount and usage of the ways and means.
According to the report, the N30 trillion debt, borrowed by the Buhari administration from the Central Bank of Nigeria (CBN), has not been fully cleared. Instead, the debt was restructured. Though Buhari had also sought to restructure this debt, Tinubu’s administration continues to manage the fallout.
In December 2023, the National Assembly approved the administration’s request to securitize N7.3 trillion of the interest accrued on the N23 trillion debt.
Recall that in May, the Debt Management Office (DMO), said that the DMO had secured N4.9 trillion out of the N7.3 trillion securitised outstanding loan. Its Director-General clarified that this debt was converted into bonds, to be repaid over 40 years with a three-year grace period on the principal.
The report therefore, noted that it is misleading to claim that the N30 trillion Ways and Means debt, which was adjusted, has been cleared.
“Claims that the debt has been fully cleared are inaccurate; it has only been restructured for long-term repayment. There is no evidence to show the Government has fully repaid the whole amount”, it stated.
