Former Vice President Atiku Abubakar has criticized the current administration’s borrowing spree, warning that it is placing “insufferable” pressure on Nigeria’s economy,Daily Trust reports.
In a statement he personally signed, the Peoples Democratic Party (PDP) presidential candidate from the last election expressed concern over Nigeria’s mounting debt burden, accusing the National Assembly of enabling the situation.
Atiku’s remarks came in response to a recent loan proposal by the federal government and a World Bank report ranking Nigeria as the third most indebted country to the International Development Association (IDA).
“The recent World Bank report, which places Nigeria as the third most indebted country to the IDA, is deeply troubling,” Atiku said. “This comes at a time when the government has submitted a proposal to the National Assembly seeking an additional N1.7 trillion loan to cover a budget shortfall for 2024 through Eurobonds. Alarmingly, this proposal is based on an exchange rate of 1 USD to N800, while the current rate from the Central Bank of Nigeria exceeds N1,600 to 1 USD.”
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He questioned the necessity of continued borrowing despite earlier claims by President Bola Tinubu that agencies like the Federal Inland Revenue Service (FIRS) and Customs had achieved record-high revenue collections to finance the budget.
“Nigeria is sinking deeper into debt, with the National Assembly once again complicit,” Atiku said. “If revenues are at record highs as claimed, why the unrelenting appetite for loans? There’s something the government is withholding from Nigerians, even as the population suffers under the weight of failed trial-and-error policies and reckless loan schemes.”
Atiku argued that the loans being pursued are poorly negotiated and misallocated, further exacerbating the country’s economic woes.
“It is concerning that the government’s unrestrained appetite for massive loans appears driven by corruption rather than genuine infrastructure and development needs,” he added. “A report by BudgIT, a budget watchdog, has highlighted the 2024 budget as riddled with waste and pork-barrel spending.”
Reflecting on Nigeria’s history with debt, Atiku lamented the reversal of progress made during the administration of former President Olusegun Obasanjo, which had successfully cleared the country’s foreign debts.
“It pains me deeply to see Nigeria back in this debt trap just a few years after we escaped it. This reckless borrowing requires caution and a return to fiscal discipline,” Atiku concluded.
