ATIKU ABUBAKAR CRITICISES PRESIDENT BOLA TINUBU OVER PROPOSED $1.25BN WORLD BANK LOAN

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By: Muftau Fatimo

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 is sinking deeper into unsustainable debt without meaningful benefits for citizens.

In a statement issued on Sunday through his media aide, Olusola Sanni, Atiku described the proposed loan facility as further proof of what he termed the Tinubu administration’s “reckless” and “habitual” reliance on borrowing despite worsening economic conditions nationwide.

The former vice president said it was troubling that an administration elected on promises of economic recovery had become associated with what he described as “industrial-scale borrowing” at a time millions of Nigerians continue to battle inflation, rising energy costs, food insecurity and declining purchasing power.

“This borrowing binge is becoming reckless, opaque and dangerously habitual,” Atiku said.

The loans are coming with a burden of weight too heavy for Nigerians to bear. Nigerians were told these loans were for infrastructure, power, and economic recovery. Yet the average citizen still lives in darkness, roads remain death traps, businesses are collapsing under crushing energy costs, and hunger has become a national epidemic,” Atiku said.

He also called on the World Bank and other international lenders to tighten conditions for future loans to Nigeria and demand stricter compliance with transparency and accountability requirements.

“At this point it has become necessary to demand that the World Bank and, indeed, other creditors apply more prudent measures in ensuring significant compliance to the terms and conditions of these loans,” he added.

Atiku questioned the rationale behind the Federal Government’s continued borrowing at a time officials insist that reforms such as fuel subsidy removal, foreign exchange liberalisation and improved tax collection have significantly boosted public revenue.

He stated, “The IDA loans are facilities granted to extremely poor countries and currently shares the same spot with Bangladesh and Pakistan as top countries in world with highest loan exposure to the World Bank.

“This data is diametrically opposed to claims by the Tinubu administration that the government had increased its revenue generation drive.”

The former presidential candidate further argued that the country risked sliding back into a debt crisis similar to the one Nigeria battled before securing relief from the Paris Club in 2005 and 2006 under the administration of former President Olusegun Obasanjo.

“It is deeply ironic that the same nation which painstakingly exited the Paris Club debt trap through the fiscal discipline, diplomatic credibility, and reform-driven leadership of the Obasanjo-Atiku administration in 2005–2006 is now being dragged back into a fresh era of debt dependency.

“Between May 2023 and now, the Tinubu administration has obtained record massive loans from the World Bank under the titles of objectives that are difficult to verify its implementation.

“The historic debt relief of 2006 was not accidental. It was earned through tough negotiations, prudent management, and international goodwill. Today, that legacy is being squandered with alarming irresponsibility,” he stated.

Atiku accused the administration of mistaking borrowing for governance.

“This administration appears to believe that borrowing is governance. It is not. Loans are not achievements. Debt is not development. And mortgaging the future of unborn Nigerians to fund present incompetence is not economic management—it is economic vandalism

We must begin to ask difficult questions, not just of the borrowers, but also of the lenders.”

He also challenged international financial institutions to insist on measurable outcomes before approving further credit for Nigeria.

“International financial institutions and credit agencies must exercise greater caution and insist on strict transparency, accountability, and measurable impact before continuing to extend credit facilities to an administration that has shown little evidence of efficient utilisation.

No responsible lender should ignore the warning signs. A government that keeps borrowing while citizens see no tangible improvement in electricity supply, healthcare, education, or infrastructure raises legitimate concerns about fiscal credibility and governance discipline,” he said.

Atiku warned that reliance on loans to address virtually every fiscal challenge could further weaken the economy and mortgage the country’s future.

He said, “Nigeria cannot continue down this dangerous path where every economic challenge is answered with another loan request. At some point, creditors must ask themselves whether they are funding development or enabling dysfunction.

“The Tinubu administration must understand that a nation cannot borrow its way out of incompetence. Governance requires vision, discipline, productivity, and trust—not endless promissory notes signed against the future of a suffering people.”

He urged the Federal Government to publish a detailed account of all loans obtained since President Tinubu assumed office, including the terms, disbursement status and projects tied to each facility.

Since assuming office in May 2023, the Tinubu administration has relied heavily on both domestic and external borrowing to finance budget deficits, stabilise public finances and support economic reforms.

Data from the Debt Management Office showed that Nigeria’s public debt rose significantly following the devaluation of the naira and fresh borrowing by both the Federal Government and state governments. The country’s debt stock, which stood at over N97tn in 2023, climbed sharply after the exchange rate unification policy increased the naira value of external debts.

The federal government has defended the borrowing strategy, insisting that most of the loans are concessional facilities targeted at infrastructure, social protection, power sector reforms and budget support.

Among the major facilities secured or negotiated under the current administration are several multibillion-dollar World Bank loans tied to power sector recovery, palliative support following fuel subsidy removal, healthcare, agriculture and economic stabilisation programmes.

Government officials have consistently maintained that the current administration inherited a fragile economy weighed down by fuel subsidy obligations, declining revenues and rising debt servicing costs, arguing that external financing is necessary to avert fiscal collapse.

However, critics contend that the increasing rate of borrowing, alongside persistent inflation, naira depreciation and worsening living conditions, has heightened concerns about Nigeria’s debt sustainability and the burden on future generations.

As of the time this report was filed, neither the Presidency nor the Federal Ministry of Finance had officially responded to Atiku’s latest remarks.