The Presidency has dismissed claims by the 2027 presidential candidate of the Nigeria Democratic Congress, Peter Obi, that the current administration has accumulated over N100 trillion in debt within three years, insisting that the rise in Nigeria’s debt profile is largely driven by currency devaluation rather than new borrowing.

The Special Assistant to the President on Social Media, Dada Olusegun, made the clarification on Tuesday while responding to Obi’s criticism of President Bola Tinubu’s fiscal policies and debt management approach.

Olusegun argued that the increase in the country’s debt figures is primarily a “mathematical effect” of the naira’s depreciation against foreign currencies, rather than a reflection of significant new loans.

“For the umpteenth time, Nigeria’s obvious debt portfolio increase over the past three years under the administration of President Tinubu is not a function of new borrowings. Rather, the vast majority of it is the mathematical impact of currency devaluation, which you also promised to implement during your campaigns,” he said.

He further noted that a portion of the current debt stock predates the present administration, explaining that about N20 trillion in Ways and Means debt inherited by the government was later converted into formal debt through securitisation.

“In addition, this administration inherited a whopping Ways and Means debt of around N20 trillion, which was securitised to ensure swift repayment by the nation. This makes up a significant portion of the debts Mr Obi is claiming the administration has accumulated within three years,” he added.

Olusegun also stated that Nigeria’s debt profile includes obligations incurred by state governments over time and should not be attributed solely to the federal government.

Addressing concerns over exchange rate fluctuations, he said changes in the naira’s value significantly affect the local currency value of external debt, even when dollar-denominated obligations remain unchanged.

He posed a rhetorical question on currency valuation, asking whether critics would also acknowledge debt reduction if the naira were artificially strengthened.

“If tomorrow, President Tinubu decides to fix the naira at N500 to a dollar and the value of our debts in naira drops drastically, will Mr @peterobi unequivocally agree that the President has repaid all of our debts?” he asked.

The presidential aide maintained that Nigeria’s external debt in dollar terms has remained relatively stable, ranging from about $108 billion in 2023 to $109 billion in 2026.

He also claimed that Nigeria’s external reserves have improved significantly, rising from around $3 billion in 2023 to approximately $40 billion in 2026, urging critics to consider broader economic indicators when assessing the country’s financial position.

His response followed Obi’s earlier criticism of the administration, in which the former Anambra State governor alleged that Nigeria’s total public debt had climbed to about N200 trillion, describing the rise as evidence of what he termed poor fiscal management.

Obi had further argued that the debt increase under President Bola Tinubu far exceeded the borrowing levels recorded during the eight-year administration of former President Muhammadu Buhari.