Former Vice President Atiku Abubakar has criticized President Bola Tinubu’s borrowing strategies, cautioning that they will exacerbate Nigeria’s economic challenges and impose severe hardship on citizens.
In a statement issued on Thursday, Atiku, who was the Peoples Democratic Party (PDP) presidential candidate in the 2023 elections, described Tinubu’s loan policies as unsustainable and poorly structured. He stated, “These Tinubu’s loans are bone-crushing for Nigerians and are bringing insufferable pressure on the economy, especially when they are not properly negotiated or utilised.”
His comments came on the heels of the Senate’s approval of Tinubu’s request for a $2.209 billion external loan. The approval was granted after Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts, presented the committee’s report during plenary.
Atiku expressed alarm over the nation’s rising debt profile, noting that the National Assembly has consistently approved borrowing requests without due scrutiny. He highlighted a recent World Bank report which ranks Nigeria as the third most indebted country to the International Development Association (IDA).
“This report is coming just as the government has already sent a proposal to the National Assembly signalling an intention to borrow an additional N1.7 trillion to cover a shortfall in the 2024 budget through Euro Bonds,” Atiku remarked.
The former Vice President raised concerns about the loan terms, emphasizing disparities in the exchange rate benchmarks. He explained, “What makes this particular loan proposal even more concerning is that it is benchmarked at the exchange rate of 1 USD to N800, whereas the current exchange rate from the Central Bank of Nigeria stands at over N1,600 to 1 USD.”
Atiku also questioned the government’s fiscal discipline, pointing out discrepancies between its borrowing habits and revenue claims. He said, “Tinubu had, in July this year, boasted that the FIRS and Customs under his watch had collected all-time high revenues to finance the budget. Why, then, are they still borrowing? There is something they are not telling Nigerians, even as they are being crushed by a combination of their failed trial-and-error policies and loan rackets.”
Furthermore, Atiku accused the administration of using loans to fuel corruption rather than addressing the country’s infrastructure and development needs. Referring to a report by Budgit, a budget monitoring organization, he said, “The 2024 budget is a mess due to the level of pork associated with it.”
Reflecting on Nigeria’s past financial achievements, Atiku lamented the current state of affairs. “I feel a sense of personal agony seeing that just a few years after the administration of President Obasanjo took our country out of foreign indebtedness, we are today back at the top spot in the same conundrum.”
He urged the government to adopt a more cautious and calculated approach to borrowing to prevent further damage to the economy.
