Former Vice President Atiku Abubakar has expressed deep concern over the recent proposal by President Bola Ahmed Tinubu’s administration to borrow an additional N1.7 trillion, describing it as a “bone-crushing” move that places undue pressure on Nigerians and the economy.
In a statement on Thursday, Atiku criticized the government’s borrowing practices, particularly the lack of transparency and prudence in negotiating and utilizing loans. He raised alarm over a recent report by the World Bank, which positions Nigeria as the third most indebted country to the International Development Association (IDA).
A Troubling Pattern
Atiku highlighted the stark implications of Nigeria’s increasing debt burden. “This report is coming just when the government has already sent a proposal to the National Assembly, signaling an intention to borrow an additional N1.7 trillion to cover a shortfall in the 2024 budget through Eurobonds,” he stated.
He expressed concern over the proposal’s exchange rate benchmark of ₦800 per $1, which contrasts sharply with the current Central Bank of Nigeria (CBN) rate of over ₦1,600 per $1, suggesting potential hidden risks to the economy.
Questions About Revenue and Borrowing
Atiku also questioned the rationale for borrowing despite Tinubu’s claims of record-breaking revenue collection by the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service.
“If Tinubu could boast that FIRS and Customs under his watch have collected all-time high revenues to finance the budget, why then are they still borrowing? It means there’s something Tinubu’s administration is not telling Nigerians,” he said.
He accused the government of driving Nigeria deeper into debt while implementing “trial-and-error policies” that exacerbate economic hardship.
Allegations of Mismanagement
The former Vice President pointed to findings by BudgIT, a budget transparency organization, which described the 2024 budget as riddled with “pork-barrel” projects. He alleged that the government’s borrowing appetite is driven by corruption rather than infrastructure or developmental needs.
Atiku lamented the reversal of gains made during the administration of President Olusegun Obasanjo, which had freed Nigeria from foreign debt burdens. “It is agonizing to see that a few years after President Obasanjo took our country out of foreign indebtedness, we are today back at the top spot in the same conundrum,” he stated.
A Call for Prudence
Atiku called for greater caution in Nigeria’s borrowing practices and urged the government to prioritize transparency and economic stability. “It is time that we apply more caution and arithmetic to this loan frenzy,” he concluded.
National Assembly’s Role Under Scrutiny
The former Vice President also criticized the National Assembly, describing it as complicit in enabling what he termed as reckless borrowing. He urged lawmakers to scrutinize the government’s loan proposals and protect Nigerians from further economic hardship.
Atiku’s remarks come amidst growing public debate over Nigeria’s rising debt profile, with analysts warning of its potential long-term consequences on economic growth and development.
