Tinubu’s Bone-Crushing Loans, Failed Policies Are Pushing Nigeria Into Deeper Debt – Atiku

Former Nigerian Vice President Atiku Abubakar has criticized the Bola Tinubu administration for its borrowing practices, describing the loans as “bone-crushing” and detrimental to the nation’s economy. His remarks follow the approval of a $2.2 billion loan request by the Senate and House of Representatives on Thursday.

In a statement reacting to the development, Abubakar alleged that the government’s policies, coupled with its borrowing habits, are exacerbating economic pressures on Nigerians. He accused the administration of employing “failed trial-and-error policies” and engaging in what he termed “loan rackets.”

Abubakar expressed alarm over a recent World Bank report that ranks Nigeria as the third most indebted nation to the International Development Association (IDA). He noted that this revelation comes as the government seeks to address a budget shortfall of N1.7 trillion for 2024 through Eurobonds. According to him, the proposed loan is pegged at an exchange rate of ₦800 to $1, despite the Central Bank of Nigeria’s current exchange rate exceeding ₦1,600 to $1.

The former vice president criticized the government for pursuing loans without proper utilization plans and questioned the inconsistency between Tinubu’s claims of record-high revenue collection by agencies like the Federal Inland Revenue Service (FIRS) and the Customs Service, and the administration’s continued reliance on borrowing. “There is something they are not telling Nigerians,” he said, emphasizing the strain these actions impose on citizens.

Abubakar further alleged that the appetite for “humongous loans” appears to be driven by corruption rather than developmental or infrastructural needs. Citing BudgIT, a budget-monitoring organization, he described the 2024 budget as riddled with excessive and questionable allocations.

Reflecting on Nigeria’s debt trajectory, he lamented that the progress made during President Olusegun Obasanjo’s administration, which lifted the country out of foreign debt, has been undone. “It is agonizing to see Nigeria back in this conundrum,” he stated, calling for greater prudence and a more calculated approach to loan acquisition.