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Buhari’s govt borrowed $400bn to stabilise naira – Senator Adeola

Published

1 year ago

April 28, 2025

Former President Muhammadu Buhari

Buhari’s govt borrowed $400bn to stabilise naira – Senator Adeola

Chairman of the Senate Committee on Appropriation, Senator Solomon Adeola (popularly known as Yayi), has claimed that the administration of former President Muhammadu Buhari borrowed more than 400 billion dollars in a bid to stabilise the naira against the US dollar.

Speaking at the 2nd Edition of the Town Hall Meeting/Mega Empowerment and Thank You Tour held in Ayetoro, Yewa North Local Government Area of Ogun State, Adeola, who represents Ogun West, said Buhari’s government also spent trillions of naira on fuel subsidy, benefitting a small fraction of the Nigerian population.

Highlighting the critical economic decisions made under President Bola Tinubu’s leadership, Adeola credited the removal of fuel subsidy and the floating of the naira as actions that saved Nigeria from economic collapse.

According to the senator, past efforts to defend the naira led to significant borrowing and subsidy payments, but Tinubu’s administration has reversed that trend.

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

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“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.”

Adeola explained that under the current policy, market forces now determine fuel prices, discouraging the misuse of subsidy benefits.“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,” he said.

He also addressed the second major policy change:“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 400 billion dollars. In order to stabilise dollar to naira rate, we were also paying subsidy. That President had to stop that.”

Adeola noted that as a result of these bold reforms, “Nigerian economy is now flowing in the right direction.” He appealed for continued patience and support for Tinubu’s administration, saying the economic policies were beginning to yield tangible benefits.

Buhari’s govt borrowed $400bn to stabilise naira – Senator Adeola

Related Topics:Buhari Featured Naira Senator Adeola

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Lagos Pensioners Draw Battle Line with Government Over Pension Enhancement

Published

2 hours ago

August 24, 2026

Trends Admin

Lagos Pensioners Draw Battle Line with Government Over Pension Enhancement

Retirees demand payment of pension increase and wage award as LASPEC cites ongoing actuarial assessment

A major confrontation is looming between the Lagos State Government and retirees under the Contributory Pension Scheme (CPS), as pensioners have issued Governor Babajide Sanwo-Olu an August 31 ultimatum to pay their long-awaited pension enhancement and wage award, or face what they described as the “mother of all protests” [citation:1].

The ultimatum was announced by the Chairman of the Nigeria Union of Pensioners Contributory Pension Scheme (NUPCPS), Lagos State Council, Comrade Michael Omisande, after a meeting with the Permanent Secretary, Public Service Office, Sunkanmi Oyegbola, which was also attended by the Director-General of the Lagos State Pension Commission (LASPEC), Babalola Obilana, and the Commission’s Executive Director, Finance, Muyiwa Oshin [citation:1].

According to Omisande, the union had in January 2026 submitted a template to the Lagos State Government for the implementation of the pension enhancement[citation:1]. Although LASPEC informed the union that approval had been granted to engage an actuary, he said no further action had been taken. “We have communicated a 19-day ultimatum to Mr. Governor to credit the accounts of pensioners on the pension increases/wage award, or face protest action tentatively fixed for August 31, 2026,” he stated [citation:1].

During the meeting, Obilana informed the pensioners that Governor Sanwo-Olu had summoned him and issued a directive on the matter but did not indicate when the payment would be implemented [citation:1]. Also present were leaders of the Nigeria Union of Pensioners Defined Benefit Scheme (NUPDBS), Olufemi Olarewaju and Olukayode Bada, while the Lagos State Chairman of the Nigeria Labour Congress (NLC), Funmi Sessi, urged LASPEC to expedite action to avert an industrial confrontation [citation:1].

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Omisande disclosed that the Speaker of the Lagos State House of Assembly, Mudashiru Obasa, and the Lagos State Commissioner of Police had been notified of the planned protest to ensure adequate security for participants [citation:1]. The union had earlier written a formal letter to the Police Commissioner on August 18, 2026, requesting protection over a planned warning protest scheduled for Monday, August 24, 2026, which would hold simultaneously at strategic locations across all 20 Local Governments in Lagos State [citation:1].

The warning protest is scheduled to hold at strategic locations across all 20 Local Governments in Lagos State, including Lagos Island, Ikorodu, Ojo, Apapa, Agege, Oshodi, Somolu, Ikeja, Surulere, Mushin, Badagry, Epe, and others [citation:1]. The letter stated that “Senior Citizens are clamoring for the payment of 16years Pension Arrears” [citation:1]. The union directed the state government to ensure that the relevant pension accounts were credited through the Pension Fund Administrators (PFAs) by August 19, warning that failure to meet the deadline would result in a mass demonstration involving over 50,000 CPS pensioners [citation:1].

Reacting to the development, the Lagos State Government said it had not received funds from the Federal Government for the pension increase and was funding the additional liability for eligible state pensioners from its own resources [citation:1]. The government dismissed the claim that federal funds meant for pensioners were being held by the state in a bank to generate interest [citation:1]. According to the government, Lagos had already implemented the approved increase for eligible pensioners under the Defined Benefits Scheme (DBS)[citation:1]. For pensioners under the CPS, however, the process was still ongoing because the government was determining its full financial liability under the scheme. “Given the structure of the CPS and the need to determine the state’s full financial exposure accurately, an independent actuary has been engaged to assess the liability and provide the appropriate basis for implementation,” the government said [citation:1].

The government rejected the suggestion that it was deliberately delaying or withholding the benefit, assuring pensioners that “there is no deliberate delay or withholding of funds” and that the process was being undertaken to ensure accurate, transparent and sustainable implementation [citation:1]. The government appreciated the concerns of pensioners and urged them to be patient while the process was completed [citation:1].

Lagos Pensioners Draw Battle Line with Government Over Pension Enhancement

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Tinubu Suspends Three Permanent Secretaries, Orders Arrest Over Fake Agency in SGF Office

Published

2 days ago

August 22, 2026

Trends Admin

President Bola Ahmed Tinubu

Tinubu Suspends Three Permanent Secretaries, Orders Arrest Over Fake Agency in SGF Office

The Independent Corrupt Practices and Other Related Offences Commission (ICPC) uncovered the “National Brands Development and Made-in-Nigeria Special Project Office,” which allegedly operated without presidential approval within the Office of the Secretary to the Government of the Federation. The President has ordered the immediate arrest of the agency’s promoter and the suspension of three top civil servants.

President Bola Tinubu has ordered the immediate suspension of three permanent secretaries and directed the arrest of the promoter of a newly uncovered fake government agency operating within the premises of the Office of the Secretary to the Government of the Federation (OSGF). The discovery was announced on Friday by the Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), Dr Musa Adamu Aliyu, SAN, during a briefing with State House correspondents at the Presidential Villa, Abuja.

The illegal entity, identified as the National Brands Development and Made-in-Nigeria Special Project Office, was found to have been allocated office space within the OSGF complex without presidential authorisation and in violation of existing regulations. The ICPC chairman explained that the discovery was made during the commission’s broader investigation into the earlier uncovered fake Presidential Foreign Intervention Promotion Council (PFIPC) and other procedural weaknesses in the public service.

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According to Aliyu, the fake agency was promoted by Prince George Buchi Nwabueze, who was found to have allegedly operated under several variations of his name, including George Nathan, George Nathan Nwabueze, Honourable George Buchi Nwabueze, and George Nwabueze. The investigation also uncovered the alleged involvement of suspected collaborators within the OSGF who may have facilitated the agency’s operations.

Following the ICPC’s briefing, President Tinubu directed the immediate arrest of Nwabueze and the suspension of three permanent secretaries: M.S. Danjuma, Engineer Nadungu Gagare, and Richard P. Pheelangwah. The ICPC has engaged with officials of the OSGF to gather vital information regarding the unauthorised office, and the investigation remains active.

The latest discovery comes barely weeks after the exposure of the fictitious Presidential Foreign Intervention Promotion Council (PFIPC), whose self-styled Director-General, Adeniyi Adeyemi Matthew, is currently facing prosecution over allegations of forgery and impersonation. An interim ICPC report submitted to President Tinubu on August 6 had also identified two other fictitious bodies: the FCT Investment Promotion Agency and the Foreign Investment Promotion Agency and Public-Private Partnership. With Friday’s announcement, the National Brands Development and Made-in-Nigeria Special Project Office becomes the fourth fake agency uncovered by the anti-corruption commission in connection with the scandal since early April.

The ICPC chairman commended President Tinubu for directing a forensic audit of government processes and a wider policy audit of federal ministries, departments, and agencies, describing the move as a proactive step towards strengthening governance and closing loopholes that could facilitate abuse within the public service. The investigation is expected to focus not only on the individuals behind the purported agency but also on the institutional weaknesses that allowed an unauthorised entity to gain access to federal government premises.

Tinubu Suspends Three Permanent Secretaries, Orders Arrest Over Fake Agency in SGF Office

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N3.14 Trillion Spent on Electricity Subsidy in 31 Months – FG

Published

2 days ago

August 22, 2026

Trends Admin

N3.14 Trillion Spent on Electricity Subsidy in 31 Months – FG

The Federal Government says the massive spending shielded consumers from the full impact of tariff hikes, but critics question the value amid persistent blackouts and plans to phase out subsidies by 2027.

The President Bola Tinubu-led Federal Government has disclosed that it spent N3.14 trillion on electricity subsidies between June 2023 and December 2025, according to figures contained in its latest economic reform scorecard. The government said the intervention was designed to protect electricity consumers from the full effect of tariff increases as reforms in the power sector continued.

The electricity subsidy was among N30.64 trillion in additional spending pressures incurred by the Federal Government during the 31-month period. The figures were released by the Ministry of Finance following a presentation by Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy.

According to the ministry, electricity subsidy payments rose sharply from N177 billion in 2023 to N1.48 trillion in 2024, representing an increase of more than 740 per cent. By December 2025, the subsidy bill stood at N1.47 trillion, indicating a marginal 1.14 per cent decline compared with the previous year.

Other major spending pressures recorded during the period included N9.39 trillion for wage adjustments and minimum-wage increases, N9.37 trillion arising from the impact of exchange-rate movements on external debt servicing, and N6.47 trillion for strategic infrastructure projects.

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The government said it mobilised N20.4 trillion in additional resources to partly finance the increased expenditure. The funds comprised N5.43 trillion from the Federal Government’s share of estimated petrol subsidy savings, N3.12 trillion in additional revenues, and N11.85 trillion raised through incremental borrowing. Despite these resources, the government said there was still a funding shortfall of N10.24 trillion, which had to be accommodated within the existing revenue base.

Despite the substantial subsidy spending, electricity supply deteriorated during the same period. According to the Nigerian Electricity Regulatory Commission (NERC), the Federal Government incurred an electricity tariff subsidy of N358.32 billion in the first quarter of 2026 alone. The subsidy bill averaged more than N119 billion per month as the government maintained its freeze on end-user electricity tariffs at July 2024 rates.

NERC explained that because electricity tariffs remain below cost-reflective levels, the government continues to subsidise the difference between the actual cost of power generation and the approved tariffs charged to consumers. Under the current Distribution Companies’ Remittance Obligation (DRO) framework, electricity generation companies invoiced the 11 DisCos a total of N689.72 billion during the quarter. However, only N331.40 billion was billed to the DisCos, leaving the government to cover the remaining N358.32 billion. The subsidy accounted for 51.95 per cent of the total generation invoice during the period.

The commission clarified that the lower subsidy payment in Q1 2026 did not result from the introduction of cost-reflective tariffs but rather from a decline in electricity purchased by the distribution companies during the quarter. According to the report, average available generation capacity fell by 17.45 per cent, dropping from 5,400.38MW in the fourth quarter of 2025 to 4,457.96MW in the first quarter of 2026. Total electricity generation also declined by 9.64 per cent to 8,883.47GWh.

The subsidy disclosure has drawn criticism from organised private sector groups. The Lagos Chamber of Commerce and Industry (LCCI) questioned the impact of the N15.8 trillion in petrol subsidy savings and criticised the N3.14 trillion electricity subsidy, saying it appeared to contradict the logic behind electricity tariff reforms and highlighted the high power costs that continue to burden businesses.

NERC has warned that the current subsidy regime leaves the Federal Government exposed to uncertain and potentially rising financial obligations. “The open-ended nature of the subsidy exposes the FGN to indeterminate subsidy obligations due to volumetric risk and changes in generation costs arising from changes in the generation mix, particularly with an increase in thermal generation,” the commission stated.

The disclosure comes against the backdrop of the Federal Government’s plan to gradually withdraw electricity subsidies from 2027. In July, Joseph Tegbe, Minister of Power, said the government had no immediate plan to increase electricity tariffs, explaining that subsidy payments would be gradually phased out from next year while ensuring that Nigerians continued to benefit from existing arrangements. “I promise you, next year, by God’s grace, we will put a stop to this so-called subsidy in the power sector,” Tegbe said.

The government has also proposed establishing a Power Consumer Assistance Fund (PCAF) , established under the Electricity Act 2023, as the preferred mechanism for delivering targeted subsidies directly to vulnerable electricity users. The initiative is designed to channel financial support through consumers’ electricity accounts or other verified identity-linked platforms, improving transparency in subsidy administration while boosting investor confidence in the sector.

However, analysts note that ending the subsidy without imposing another sharp tariff increase will require widespread metering, lower transmission and distribution losses, improved collections, reliable supply, and targeted protection for poorer households. The government is also working to clear debts owed to power generation companies, with GenCos reportedly owed about N6.5 trillion and receiving only about 35 per cent of their monthly invoices.

In April 2024, NERC raised electricity tariffs for Band A customers from N66 to N225 per kilowatt-hour. The affected consumers were expected to receive at least 20 hours of electricity daily, while the adjustment was projected to reduce the government’s subsidy burden by about N1.14 trillion in 2024. Despite this adjustment, the subsidy bill for 2024 and 2025 combined still reached nearly N3 trillion.