Tinubu’s $500m loan, trap for my incoming administration – Atiku

Former Vice President and African Democratic Congress presidential candidate, Atiku Abubakar, has rejected the Federal Government’s proposed $500m World Bank loan, arguing that the Bola Tinubu administration should not enter into a fresh debt commitment shortly before the 2027 presidential handover.

Atiku’s position followed reports that the Federal Government is seeking the World Bank facility to establish an infrastructure financing platform designed to attract private investment into critical sectors of the Nigerian economy.

The proposed facility is part of a broader $3.85bn initiative known as the Nigeria Infrastructure Financing and De-Risking Platform for Growth and Jobs, or INFRAGROW.

According to the World Bank’s Initial Project Information Document, prepared and updated on November 4, 2026, the Federal Ministry of Finance is listed as the borrower, while the Nigeria Sovereign Investment Authority is designated as the implementing agency.

The proposed $500m financing comprises $400m from the International Bank for Reconstruction and Development and $100m from the International Development Association.

The World Bank has scheduled a technical design review for January 21, 2027, while May 25, 2027, is listed as the estimated approval date.

The date is four days before the scheduled May 29, 2027, presidential inauguration.

However, the proposed facility has not been approved, and the World Bank’s timetable remains subject to change. Approval would also not necessarily mean immediate disbursement or implementation.

Reacting to the proposed facility, Atiku, in a statement issued by Phrank Shaibu, Director of Strategic Communication, ADC Presidential Campaign Council, said the Tinubu administration should not commit the country to fresh borrowing at the end of its tenure.

“Taking loans as if you were a drunken sailor is a road to economic bondage, a second slavery,” Atiku said.

He described the proposed borrowing as a move that could constrain the next administration and said Nigerians should be given full information about the terms, risks and repayment obligations attached to the facility.

According to him, the proposed loan should not be approved without adequate public scrutiny.

“We call on the World Bank not to approve this proposed loan on the timetable now being contemplated,” he said.

Atiku also said an administration approaching the end of its tenure should not make financial commitments that would extend into the tenure of its successor.

“I will not accept it. The Atiku administration will commence on May 29, 2027, and we will not begin our government by taking another loan,” he said.

The proposed $500m facility is intended to form the initial financing for INFRAGROW, which is designed to mobilise additional capital from private investors, commercial lenders and international financial institutions.

Under the proposed structure, the NSIA is expected to contribute $200m in equity, while private investors are projected to provide another $200m. Commercial debt financing is estimated at $600m.

The wider arrangement also includes $100m in IDA payment guarantees and $2.25bn in guarantees from other international financial institutions, bringing the proposed guarantee-related financing arrangements to $2.35bn.

The platform is expected to operate through four subsidiaries: a Project Preparation Facility, a Viability Gap Fund, a Risk Capital Facility and a Credit Guarantee Vehicle.

The Project Preparation Facility is designed to finance feasibility studies, transaction structuring, risk assessments and procurement support, while the Viability Gap Fund would support projects that are economically important but unable to generate sufficient commercial returns.

The Risk Capital Facility would provide equity and other forms of patient capital to infrastructure projects, while the Credit Guarantee Vehicle would provide guarantees against specified credit defaults, public-sector payment failures and political risks.

The World Bank said the initiative is intended to mobilise private capital for infrastructure development and address weaknesses in project preparation and investment.

The bank estimates Nigeria’s annual infrastructure financing gap at approximately $100bn and identifies inadequate investment and weak project preparation as constraints to growth, competitiveness, fiscal sustainability and job creation.

The proposed project would support infrastructure investment in areas including energy, transport and water. The World Bank has classified its environmental and social risks as high because such projects could involve land acquisition, community displacement, environmental damage and occupational hazards.

Atiku’s objection comes amid broader borrowing proposals by the Tinubu administration. On November 4, 2026, Reuters reported that Tinubu had asked lawmakers to approve a new $7.7bn external borrowing plan to finance projects and programmes in the 2026 budget and support the government’s economic reform agenda. The request replaced an earlier $20.5bn borrowing proposal.

Nigeria’s total public debt stood at ₦166.79tn as of June 30, 2026, according to the Debt Management Office. The figure comprised domestic and external obligations of the Federal Government, states and the Federal Capital Territory.

The proposed World Bank facility remains at the preparation stage and has yet to receive approval.