An Economist and financial expert Kalu Aja has faulted President Bola Ahmed Tinubu’s claims that his administration cleared ways and means of borrowing secured from the Central Bank of Nigeria......Read The Full Article>>.....Read The Full Article>>
Tinubu had claimed that the debts were cleared in six months.
Tinubu claimed during his October 1, Independent Day speech that, “The more disciplined approach adopted by the Central Bank to monetary policy management has ensured stability and predictability in our foreign exchange market. We inherited a reserve of over $33bn 16 months ago. Since then, we have paid back the inherited forex backlog of $7bn.
“We have cleared the ways and means debt of over N30tn. We have reduced the debt service ratio from 97 per cent to 68 per cent.”
However, data released by the Debt Management Office regarding National Public Debt showed that the ways and means have not been cleared.
A circular dated September 8, 2024, titled, ‘Nigeria’s Total Public Debt Stock As At June 30, 2023’ which was released by the DMO confirmed that the securitised ways and means from the CBN has been added to the public debt stock.
DMO said, “The major addition to the Public Debt Stock was the inclusion of the N22.712tn securitised FGN’s Ways and Means Advances. The securitisation of the FGN Ways and Means Advances after receipt of requisite approvals, has enabled its inclusion in the Total Public Debt Stock.
“This development, which was welcomed by development partners amongst others, has improved debt transparency and led to the reduction in Debt Service costs associated with the Ways and Means Advances.
“Other additions to the Debt Stock were New Borrowings by the FGN and the subnationals from local and external sources.”
Reacting, Aja described the claim by the president as misleading.
He said the president’s Independence Day speech specifically on the economy was ” filled with inaccuracies and falsehoods. Who vetted it?
“How can the President say he “cleared” Ways and Means of N30t? Or “attracted FDI of $30b.”
Aja said the Ways And Means were included in the official debt stock of Nigeria as bonds.
“These are not simple errors; these are gross lies and falsehoods, and it’s pretty straightforward to fact-check these.
“The media and strategy team of the President must realise that when President Tunubu speaks, it is a record, and his audience is also outside of Nigeria. This audience includes investors and multinational agencies.
“How does a Bloomberg trader trust a nation whose President says FDI again Foreign Direct Investment inflow was $30b in 12 months, yet reserves are $37bn and the currency is depreciating to $1:N1700? Not good.”
