ENUGU, Nigeria (VOICE OF NAIJA)- Former Vice President Atiku Abubakar has criticised the administration of President Bola Tinubu over reports that the Federal Government is negotiating a fresh $1.25 billion loan from the World Bank, warning that the country risks sliding into deeper debt without visible improvements in citizens’ living conditions.
In a statement issued through his media aide, Olusola Sanni, Atiku described the proposed loan as evidence of what he called the administration’s “reckless” and “habitual” dependence on borrowing despite worsening economic hardship across Nigeria.
The former presidential candidate said it was troubling that an administration elected on promises of economic recovery had become associated with what he termed “industrial-scale borrowing,” while Nigerians continue to grapple with inflation, rising food prices, energy costs and declining purchasing power.
According to him, the growing debt burden raises serious concerns about transparency, accountability and the overall direction of the country’s economic management.
Atiku argued that despite repeated government claims that reforms such as fuel subsidy removal, foreign exchange liberalisation and improved tax collection have boosted public revenue, the administration continues to rely heavily on external borrowing.
He questioned why the government keeps seeking loans while many Nigerians see little improvement in electricity supply, infrastructure, healthcare, education and general economic conditions.
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The former vice president also called on the World Bank and other international lenders to tighten conditions attached to loans granted to Nigeria and insist on stricter compliance with transparency and measurable implementation benchmarks.
He further noted that Nigeria currently ranks among countries with significant exposure to International Development Association facilities, alongside nations such as Bangladesh and Pakistan, a situation he said contradicts official claims of stronger revenue performance.
Drawing comparisons with Nigeria’s debt relief negotiations under former President Olusegun Obasanjo, Atiku said the country risks returning to a debt crisis similar to the pre-Paris Club era if borrowing continues unchecked.
He maintained that the debt relief secured between 2005 and 2006 was achieved through fiscal discipline, reform-driven governance and diplomatic credibility, warning that those gains are now being undermined.
Atiku accused the Tinubu administration of mistaking borrowing for governance, insisting that loans alone cannot substitute for productivity, sound economic planning and effective leadership.
He also urged the Federal Government to publish detailed records of all loans secured since May 2023, including their terms, disbursement status and project implementation details.
Since assuming office, the Tinubu administration has relied on a mix of domestic and external borrowing to support budget financing, economic reforms and social intervention programmes.
Data from the Debt Management Office has shown a sharp increase in Nigeria’s debt profile, partly driven by fresh borrowing and the naira depreciation that significantly raised the local value of external debt obligations.
The Federal Government has repeatedly defended its borrowing strategy, arguing that most facilities secured are concessional loans targeted at infrastructure, healthcare, agriculture, power sector reforms and social protection programmes.
However, critics continue to warn that rising debt levels, combined with inflation, currency depreciation and worsening economic hardship, could pose long-term risks to fiscal sustainability and future generations.
As of the time of filing the report, neither the Presidency nor the Federal Ministry of Finance had officially responded to Atiku’s latest remarks.