Former Vice President Atiku Abubakar has criticized the recent approval of a $2.2 billion (N1.7 trillion) loan request by President Bola Tinubu’s administration, calling it “bone-crushing” and detrimental to Nigerians.
In a statement released on Thursday, Atiku expressed alarm over the economic strain caused by the growing debt and questioned the rationale behind the new borrowing.
Referencing a recent World Bank report, Atiku noted that Nigeria now ranks as the third most indebted country to the International Development Association (IDA), a trend he finds deeply troubling.
“The National Assembly has become an accomplice in Nigeria’s escalating debt crisis,” Atiku lamented, pointing out inconsistencies in government revenue claims. “Tinubu had, in July this year, boasted that the Federal Inland Revenue Service (FIRS) and Customs have recorded all-time high revenue collections to finance the budget. Why then are we still borrowing?”
He also raised concerns over the exchange rate applied to the loan, benchmarked at 1 USD to N800, while the Central Bank of Nigeria’s official rate currently exceeds N1,600 to 1 USD.
“This disparity highlights the flawed and opaque approach of this administration in handling Nigeria’s economy,” Atiku remarked.
The former vice president accused the government of borrowing for reasons driven by corruption rather than genuine developmental needs. He referenced a report by BudgIT, a budget watchdog, which labeled the 2024 national budget as chaotic due to excessive allocations for questionable projects.
“I feel personal agony seeing how far we have fallen. It is disheartening that after President Obasanjo’s administration successfully relieved Nigeria of its foreign debt burden, we find ourselves back in the same pit,” Atiku said, reflecting on Nigeria’s regression.
Calling for fiscal restraint, Atiku urged the administration to adopt a more calculated approach to borrowing and economic management to avoid further harm to the country
