Buhari’s Govt Borrowed $400 Billion To Stabilise Naira – Lawmaker Reveals

The Chairman of the Senate Committee on Appropriation, Solomon Adeola, has claimed that the administration of former President Muhammadu Buhari incurred debts exceeding 400 billion dollars to stabilize the naira in relation to the US dollar.

Adeola, representing Ogun West, further stated that the government allocated trillions of naira towards fuel subsidies, which primarily benefited less than one percent of Nigeria’s population.

He asserted that President Bola Tinubu’s two pivotal actions the removal of fuel subsidies and the floating of the naira have rescued Nigeria’s economy from imminent collapse.

The Senator made these remarks on Saturday during the 2nd Edition of the Town Hall Meeting/Mega Empowerment and Thank You Tour, which took place in Ayetoro, Yewa North Local Government Area of Ogun State.

He noted that the previous administration had heavily borrowed to finance fuel subsidies and stabilize the naira against the dollar, but he believes that the decisive measures taken by the Tinubu administration are crucial for the nation’s recovery.

He commended President Tinubu for making the ‘difficult yet essential decision’ to rejuvenate the previously stagnant economy.

Adeola said, “When the president assumed office, he carried out two major policies that hit Nigerians hard. We now heave a sigh of relief.

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“First, he removed the fuel subsidy. He removed the fuel subsidy because the subsidy payment ended up in the hands of people who are less than 1% of Nigerians. Yearly, the former president would have to borrow huge amount of money in the tune of trillions of naira in order to pay fuel subsidy.

“But when the current President, my father, Bola Ahmed Tinubu, assumed office, the payment of subsidy elapsed the day the immediate past president handed over power to Tinubu. So, there was no fund budgeted for the continuous payment of the subsidy. The government that left had stopped subsidy payment and when our father (referring to Tinubu) got to power, he said he could no longer afford to be borrowing huge amount of money that will end up in the hands of less than 1 percent of the country’s population, whereas the payment is made for all Nigerians.

“Today, anyone can bring in fuel and sell it at your own price as far as it pays off. One person can own ten cars and the country is expected to pay subsidy on all the cars. But if there is no subsidy, your cars won’t be more than one or two.

“The second policy has to do with the floating of the naira . Before, in order to stabilise the dollar to naira rate, we have to borrow money. We borrowed to suppress it.

“By the time this government assumed office, the amount borrowed is well above 400billion dollars. In order to stabilise dollar to naira rate, we were also paying subsidy. That President had to stop that.”

He remarked that following President Tinubu’s decisive actions, the Nigerian economy is now progressing positively.

Adeola urged the populace to remain patient with President Tinubu’s administration, asserting that the current economic strategies are beginning to produce favorable outcomes.

Regarding the empowerment initiative, the senator clarified that it was designed to recognize and reward the constituents of Yewa North Local Government Area for their support during the 2023 general elections.

He further noted that this empowerment program, which also took place in Imeko-Afon LGA on Friday, is set to occur in Yewa South, Ipokia, and Ado-Odo/Ota local government areas.

Reflecting on his accomplishments in the Senate over nearly two years, Adeola stated that he has leveraged his role as Chairman of the Senate Committee on Appropriations to advocate for the rights of his constituents and to promote developmental projects in Ogun West.

Adeola highlighted a range of infrastructural initiatives he has successfully facilitated and completed during this time, which include road construction, the installation of power transformers, solar lighting, ICT centers, the establishment of Primary Healthcare Centres, modern markets, and police stations.

Furthermore, the Senator announced that an additional 3,000 students from the six LGAs in Ogun West will receive scholarships and bursaries of ₦200,000 and ₦100,000, respectively.

He expressed gratitude to Governor Dapo Abiodun for his unwavering support of his initiatives in Ogun West, particularly the empowerment programs, and encouraged the community to continue backing the current administration.

In earlier comments, Dr. Iziaq Kunle Salako, the Minister of State for Health and Social Welfare, emphasized President Tinubu’s steadfast commitment to the welfare of the populace and urged Nigerians to maintain their cooperation and support for the president.

Salako also commended Adeola’s empowerment efforts, noting that within less than two years in office, the Senator has delivered on his campaign commitments.