Former Vice President Atiku Abubakar has sharply criticized President Tinubu’s plan to borrow $24 billion. The criticism was issued in a statement released on Thursday.
Atiku described the plan as reckless and dangerous for Nigeria’s future. Therefore, he warned that the borrowing would mortgage the country’s future and burden generations yet unborn.
Tinubu’s plan to borrow $24 billion includes $21.54 billion, €2.19 billion, and ¥15 billion in fresh loans. Atiku said this amount represents more than 60 percent of Nigeria’s total foreign exchange reserves.
The borrowing would push Nigeria’s public debt from N144.7 trillion to N183 trillion. He said the current public debt stood at $94 billion as of December 31, 2024.
He said, “The announcement by the Tinubu-led APC government to pursue fresh external and domestic loans is reckless.”
According to the report, the opposition leader warned that the loan threatens the future of Nigeria and unborn generations.
Speaking further, he highlighted that Nigeria’s debt burden remains alarming. According to him, as of the end of 2024, the public debt was $94 billion. However, since Tinubu assumed office in 2023, public debt rose by 65.6 percent.
Atiku pointed out the massive increase under the APC-led administration since 2015. He claimed that public debt ballooned by 1,048 percent, from N12.6 trillion to N144.7 trillion and warned that the debt-to-GDP ratio has exceeded 50 percent.
The debt-service-to-revenue ratio, according to Atiku, is over 130 percent. This means the government spends more on loan repayments than it earns. He described this situation as unsustainable and immoral.
He also claimed that the borrowing is not for development but to service existing loans and called it a debt spiral that leaves nothing for infrastructure, education, healthcare, or jobs.
Atiku said, “The announcement by the Tinubu-led APC government to pursue fresh external and domestic loans is a reckless and dangerous move that threatens the future of Nigeria and generations yet unborn.”
“Despite national outrage, this administration is pushing ahead with plans to borrow $21.54 billion, €2.19 billion, and ¥15 billion — an equivalent of over $24 billion,” Atiku added.
“This borrowing spree will raise our total public debt from N144.7 trillion to a crushing N183 trillion,” he explained.
In addition, Atiku condemned the borrowing as immoral and unsustainable. He said, “The Tinubu administration is borrowing money not for development but to service existing loans.”
He warned the borrowing fuels a debt spiral. “This leaves nothing for infrastructure, education, healthcare, or jobs.”
Meanwhile, the Minister of Finance, Wale Edun, has revealed that Tinubu’s government will repay loans through the concession of major national projects to private sector.
