November 21, (THEWILL) – Former Vice President, Atiku Abubakar, has raised an alarm over what he described as President Bola Ahmed Tinubu’s “voracious appetite for loans,” warning that the administration’s borrowings are exerting unbearable pressure on Nigerians and the country’s fragile economy.
Atiku’s criticism follows the Senate’s approval on Thursday of Tinubu’s request to secure an additional external loan of N1.77 trillion. The funds, according to the president, will be used to bridge a funding gap in the N28.7 trillion 2024 Appropriation Bill.
In a statement personally signed by the former vice president, who was the presidential candidate of the opposition Peoples Democratic Party in the 2023 elections, Atiku accused Tinubu’s administration of prioritising corruption over genuine infrastructure and development needs.
He stated, “The recent report released by the World Bank showing Nigeria as the third most indebted country to the International Development Association is very concerning.
“This comes at a time when the government is proposing an additional N1.7 trillion loan to cover the 2024 budget deficit through Eurobonds. What makes this even more alarming is that the loan is benchmarked at an exchange rate of 1 USD to N800, while the current official rate from the Central Bank of Nigeria stands at over N1,600 to 1 USD.”
Atiku questioned the rationale behind the borrowings, noting Tinubu’s earlier claims of record revenue collections by the Federal Inland Revenue Service and Customs.
“If the FIRS and Customs are collecting all-time high revenues as Tinubu boasted in July, why then are they still borrowing? This administration’s loan frenzy is becoming inexplicable, especially when Nigerians are already burdened by the adverse effects of failed economic policies and skyrocketing debts,” Atiku added.
He further alleged that the loans were “powered by corruption” rather than the genuine needs of the populace. Citing a report by BudgIT, a budget transparency organisation, Atiku described the 2024 budget as “a mess” riddled with unnecessary expenses.
Reflecting on Nigeria’s debt history, Atiku lamented the return to excessive borrowing after former President Olusegun Obasanjo’s administration successfully cleared the nation’s foreign debt.
“It is heartbreaking to see Nigeria back in this vicious cycle of debt just a few years after President Obasanjo’s administration freed us from foreign indebtedness. We must apply more caution and arithmetic to this loan frenzy before it plunges the nation further into economic turmoil,” he said.
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