The Federal Government has revealed that President Bola Tinubu inherited more than $6 billion in unpaid petroleum import bills when he assumed office in May 2023, saying the debt was among the major challenges confronting the Nigerian economy.
The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, disclosed this in Abuja while presenting the government’s assessment of the impact of the economic reforms introduced by the Tinubu administration.
Bagudu said the inherited obligations placed additional pressure on Nigeria’s already fragile foreign exchange position, while also weakening investor confidence in the economy.
According to the minister, the situation was so severe that the Nigerian National Petroleum Corporation had to borrow funds to finance petroleum imports because the country lacked sufficient foreign exchange to meet its obligations.
He said the discovery of the unpaid import bills highlighted the extent of the financial difficulties inherited by the administration and reinforced the need for major economic policy changes.
The minister linked the situation to the government’s decision to implement reforms, including the removal of the petrol subsidy and changes to the foreign exchange system.
Bagudu argued that the reforms were designed not only to improve government revenue but also to restore confidence in Nigeria’s economy and attract fresh investments.
He cited efforts to expand domestic refining capacity as part of the administration’s strategy to reduce dependence on imported petroleum products and ease pressure on the country’s foreign exchange reserves.
Despite the reforms, however, the minister admitted that Nigeria still had significant economic challenges ahead.
He said the country’s revenue-to-GDP ratio remained below the level needed to adequately finance development, adding that Nigeria was “nowhere near where we want to be” in terms of revenue generation, subsidy savings and economic growth.
Bagudu maintained that the government would continue implementing reforms while investing in infrastructure, security and human capital development across the six geopolitical zones.
He urged Nigerians and other stakeholders to support the reform process, stressing that sustained improvements in revenue and investor confidence would be crucial to achieving stronger economic growth.
