Former Vice President Atiku Abubakar has once again taken President Bola Tinubu to task for what he sees as an insatiable desire for foreign loans. Atiku's comments come at a time when Nigeria is facing mounting concerns about the impact of increasing national debt levels on the economy. The former Vice President highlighted these concerns following the recent approval by the National Assembly of President Tinubu's request to borrow N1.7 trillion from external sources.
In a statement released from Abuja, Atiku criticized the government’s reliance on foreign borrowing, describing it as a potential source of long-term financial instability and an impediment to Nigeria’s economic development. Atiku remarked, "The recent report from the World Bank, which lists Nigeria as the third most indebted country to the International Development Association (IDA), should be a wake-up call. This report comes at a time when the government is pushing forward yet another loan proposal—a shortfall in the 2024 budget through Euro Bonds, priced at an exchange rate of 1 USD to N800, despite the actual exchange rate from the Central Bank of Nigeria hovering over N1,600 to 1 USD."
Atiku further questioned the necessity of these loans, pointing out that the Nigerian government boasted just recently of record revenues collected by the Federal Inland Revenue Service (FIRS) and Customs to finance the budget. “If those revenues were sufficient, then why are we still borrowing? There must be something that the Tinubu administration is not telling Nigerians,” Atiku stated. He went on to warn that these loans represent a significant financial burden for Nigerians, who are already grappling with the impact of the government’s economic policies and alleged mismanagement of funds.
The Turakin Adamawa also highlighted the risk of long-term consequences, noting, “Nigeria is sinking further into debt, and the National Assembly, in approving these loan requests, has essentially become an accomplice in this financial crisis.” Atiku expressed deep concerns over the continued borrowing frenzy, pointing out that it is not justifiable for loans to be approved without clear utilization plans or properly negotiated terms. “These loans are bone-crushing to Nigerians, causing unbearable pressure on the economy, especially when they are not used for real infrastructure or development purposes," Atiku said. He added, “The earlier administration of President Olusegun Obasanjo had successfully pulled Nigeria out of foreign indebtedness. Now, we find ourselves once again at the top of the same mess.”
Atiku concluded by calling for greater caution and transparency in the government’s handling of loans, urging more rigorous application of financial prudence and accountability measures. “It’s time to apply more arithmetic to this loan frenzy and take a more cautious approach,” Atiku said.
