Former Vice-President of Nigeria, Alhaji Atiku Abubakar, has strongly criticized President Bola Tinubu’s administration for what he describes as a reckless borrowing spree, pushing Nigeria into a severe debt crisis. Atiku also accused the National Assembly leadership of enabling the borrowing, calling them accomplices to the economic mismanagement.
Nigeria’s Alarming Debt Profile
Atiku’s remarks come in response to a recent World Bank report, which ranks Nigeria as the third-largest debtor to the International Development Association (IDA). He expressed deep concern about this development, stating:
“The report showing Nigeria as the third most indebted country to the IDA is extremely concerning.”
The former vice-president highlighted the administration’s proposal to borrow ₦1.7 trillion via Euro Bonds to address the 2024 budget deficit, a move he described as reckless and ill-planned.
Exchange Rate Discrepancy and Fiscal Irresponsibility
Atiku also pointed out the flawed nature of the proposed loans, particularly the exchange rate assumptions.
“This loan proposal is benchmarked at ₦800 to $1, whereas the Central Bank’s exchange rate exceeds ₦1,600 to $1. Such discrepancies raise serious questions about transparency and fiscal responsibility,” Atiku noted.
He further condemned the debt accumulation for its impact on ordinary Nigerians, stating:
“These loans are crushing Nigerians with unbearable economic pressure, especially when they are neither well-negotiated nor utilized for genuine development purposes.”
National Assembly’s Role in the Debt Crisis
Atiku didn’t spare the National Assembly, accusing them of complicity in enabling the government’s borrowing frenzy.
“The National Assembly has once again become an accomplice, allowing Nigeria to sink further into debt.”
He questioned why the administration continues to borrow despite claims of record revenue collection by agencies like the Federal Inland Revenue Services (FIRS) and Nigerian Customs.
Allegations of Corruption and Mismanagement
Atiku alleged that the excessive borrowing is fueled by corruption rather than infrastructure development or economic needs. Referring to a recent BudgIt report, he criticized the 2024 budget, calling it “a mess” due to the excessive pork-barrel spending included.
“The appetite for these massive loans is driven by corruption rather than genuine national interest,” he asserted.
A Call for Fiscal Responsibility
Reflecting on past efforts to reduce Nigeria’s foreign debt, Atiku expressed personal disappointment:
“Just years after President Obasanjo’s administration freed Nigeria from foreign indebtedness, we are back at the top of the debt trap.”
In conclusion, he urged caution and fiscal discipline:
“It’s time for this administration to apply more caution and arithmetic to its loan frenzy. Recklessness will only worsen the plight of Nigerians.”
Atiku’s criticism underscores the growing concerns over Nigeria’s economic trajectory under President Tinubu’s administration, with calls for greater accountability and transparency in managing public finances.
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