The Peoples Redemption Party has questioned President Bola Tinubu’s assertion that his administration cleared the N30 trillion Ways and Means debt.
In a statement, the party’s Acting National Publicity Secretary, Muhammed Ishaq, described the claim as misleading.
The PRP argued that instead of clearing the debt, the government securitized it through local currency-denominated Promissory Notes, according to Ripples Nigeria.
This involved selling the notes to investors to pay off debts owed to the Central Bank of Nigeria, effectively maintaining the nation’s debt obligations.
The party demanded clarity on the transaction, seeking details on the parties involved, fees paid, and appointment processes. The PRP also called on President Tinubu to provide a comprehensive account of the Ways and Means debt.
Nigeria’s public debt has increased to N121.67 trillion as of the first quarter of 2024, according to the Debt Management Office. The PRP’s concerns highlight the need for transparency and accountability in managing the nation’s debt.
The party emphasized the importance of truthful communication with citizens, urging the government to cease using misleading terminology. The PRP advocates for transparent governance, ensuring citizens are informed about the reality of Nigeria’s national debt.
The National Assembly has been urged to investigate the debt swap issues, ensuring accountability and transparency in financial commitments made by the government.
PRP also challenged President Tinubu to “provide a comprehensive and truthful account of the status of the Ways and Means debt.”
“The statement read: “The Peoples Redemption Party (PRP) wishes to address a recent statement made by President Bola Ahmed Tinubu in his Independence Day speech, wherein he claimed that his administration has ‘cleared’ the N30 trillion accumulated Ways and Means debt.
“The assertion that the government has cleared the Ways and Means debt is misleading and raises serious questions about the accuracy of the information being provided to Nigerian citizens.
“If any, what we hear from certain relevant government agencies is that the debt is increasing, hence the bill sent to the National Assembly to increase the maximum threshold of FGN Debts from the Central Bank of Nigeria (CBN).
“Indeed, reports indicate that instead of an outright clearance, this debt has simply been securitized What a deceit? What the government did in essence was to issue local currency-denominated Promissory Notes, sell same to investors, and use the proceeds from the sale to pay the debts owed to the CBN in the Ways and Means financing debacle which practically means that the nation is still owing till date.
“Furthermore and unfortunately, the Nation has not been provided with the details of these Notes: the tenure, rate, and investors, as well as the potential impact of the Notes on our economy. To say the least, the Notes issuance has been shrouded in secrecy and mystery.
“We wish to demand answers to the following questions: Who were the parties to the transaction? How much fee were they paid? How were they appointed?
“These and several other questions begged for explanations and the failure to give these explanations on the process of the Notes Issuance raises serious questions about the accountability and transparency of financial commitments made by the government.
“Nigerians demand explanations. The National Assembly should raise its responsibility by investigating the debt swap issues.
“The PRP calls on President Tinubu to provide a comprehensive and truthful account of the status of the Ways and Means debt. As citizens, we deserve clarity on the spending and management of our nation’s finances, particularly when it comes to debts that could potentially strangle our economy and limit future growth opportunities.
“In this era of democratic governance, it is crucial for those in positions of power to communicate honestly with the populace. We urge the government to cease the use of misleading terminologies that distort the truth and serve only to mislead our citizens. In doing so, the government can restore trust among the populace and demonstrate a commitment to responsible governance.
“We believe in a transparent governance framework and hold the view that the citizens of Nigeria should be informed of the reality regarding our national debt. Transparency is essential for effective governance and the successful management of our national resources.”
