The 2023 presidential candidate of the Peoples Democratic Party (PDP), Atiku Abubakar, has expressed grave concerns over Nigeria’s escalating debt profile and the government’s relentless borrowing spree.
In a statement shared on his X (formerly Twitter) handle on Thursday, Atiku criticized the recent loan proposal of ₦1.7 trillion, describing it as detrimental to Nigeria’s already strained economy.
Referring to a recent World Bank report that ranked Nigeria as the third most indebted country to the International Development Association (IDA), Atiku said, “This report is coming just when the government has already sent a proposal to the National Assembly signaling an intention to borrow an additional ₦1.7 trillion being shortfall in the 2024 budget through Euro Bonds.”
Exchange rate discrepancy
The former vice president also raised questions about the exchange rate benchmark for the proposed loan.
“What makes this particular loan proposal even more concerning is that it is benchmarked at the exchange rate of 1 USD to ₦800, whereas the current exchange rate from the Central Bank of Nigeria stands at over ₦1,600 to 1 USD,” he noted.
Atiku argued that this discrepancy suggests a lack of transparency in the government’s borrowing plans and casts doubt on its financial management.
Criticism of revenue claims
Atiku questioned the administration’s claims of record revenue collection.
“In July this year, Tinubu boasted that the @FIRSNigeria and @CustomsNG under his watch had collected all-time high revenues to finance the Budget. Why are they still borrowing? There is something that they are not telling Nigerians,” he stated.
He accused the government of burdening Nigerians with “bone-crushing” loans that fail to yield tangible benefits.
“These @officialABAT’s loans are bone-crushing to Nigerians and bringing insufferable pressure on the economy, especially when they are not properly negotiated and utilized,” Atiku said.
Corruption allegations
Atiku further alleged that corruption drives the government’s borrowing appetite, rather than genuine developmental needs.
“It is concerning that the voracious appetite for these humongous loans is powered by corruption and not for infrastructure and development needs,” he said, citing a report by BudgIT, which described the 2024 budget as poorly constructed due to excessive pork-barrel allocations.
A return to indebtedness
Expressing frustration over the nation’s current debt status, Atiku recalled the efforts of former President Olusegun Obasanjo’s administration to clear Nigeria’s foreign debt.
“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 lamented.
Call for caution
Atiku concluded his remarks by urging the government to reconsider its approach to loans.
“It is time to apply more caution and arithmetic to the loan frenzy,” he warned.
The statement has sparked widespread debate, with many Nigerians echoing Atiku’s concerns about the implications of unchecked borrowing on the nation’s economy.