Get Guardian on Google…Warns of rising debt burden
Former Vice President Atiku Abubakar has condemned President Bola Tinubu’s request for Senate approval to borrow another $7.7 billion, equivalent to approximately ₦10.79 trillion, to part-finance the 2026 budget deficit.
Atiku questioned the frequency of the Federal Government’s borrowing requests, arguing that Nigerians should not be expected to treat the growing debt burden as routine government business.
In a statement, the former vice president said the latest request came barely days after an external borrowing proposal of $20.52 billion and €1.045 billion was presented to the National Assembly.
“What is the problem with this government? Why is President Tinubu making borrowing requests on behalf of Nigeria week in, week out?” he asked.
He warned that every additional foreign loan represented a financial obligation that Nigerians and future generations would eventually have to repay.
According to him, the government cannot continue to present borrowing as a substitute for sound economic management while households and businesses bear the consequences of worsening economic conditions.
Atiku said the latest borrowing proposal raised critical questions about the specific projects to be financed, their individual costs, repayment schedules, interest rates and other loan conditions.
He noted that the President’s letter indicated that the final borrowing terms would depend on market conditions at the time the loan was priced, arguing that Nigerians deserved full disclosure before the government secured approval.
“The Senate must scrutinise this proposal line by line. It must demand a full project list, clear funding allocations, the proposed loan terms and a credible repayment plan before considering approval.
“No government should receive a blank cheque to contract foreign debt in the name of budget implementation,” he said.
The former vice president urged the National Assembly to exercise caution, insisting that President Tinubu should not commit Nigerians and future administrations to additional debt without transparency and rigorous legislative scrutiny.
He also called on international agencies and lenders to suspend fresh loans to the administration until it provides transparent borrowing terms, a credible repayment plan and evidence of how previous loans have benefited Nigerians.
Atiku further criticised the administration’s economic management, arguing that despite removing the petroleum subsidy, Tinubu had presided over what he described as Nigeria’s highest borrowing levels.
He accused the government of worsening the cost-of-living crisis, saying millions of Nigerians were struggling to afford basic necessities while businesses faced mounting operational pressures and some were forced to close.
The former vice president also questioned the administration’s infrastructure spending, alleging that Nigeria continued to experience significant infrastructure deficits despite the massive accumulation of debt.
“So the question is: what is Tinubu using his loans to finance specifically?” he asked.
Atiku said Nigerians were increasingly frustrated by rising living costs, inadequate public infrastructure and what he described as the absence of effective social welfare interventions.
He, however, said he had a different economic approach aimed at reversing the country’s growing poverty and debt burden.
According to him, his proposed alternative includes restoring social welfare programmes through the introduction of production-based subsidies on petroleum products.
Atiku maintained that Nigeria could not borrow its way out of every budget deficit, urging lawmakers to remember that their primary responsibility was to Nigerians rather than the executive.
He said the National Assembly must compel the Federal Government to provide satisfactory answers to questions surrounding its borrowing plans before approving another loan that could deepen the country’s debt burden.
