Former Vice President Atiku Abubakar has criticised President Bola Tinubu’s administration over reports of a proposed $1.25 billion loan from the World Bank, warning that Nigeria is drifting further into unsustainable debt with little improvement in citizens’ welfare.
In a statement issued on Sunday through his media aide, Olusola Sanni, Atiku described the planned borrowing as evidence of what he called a “reckless and habitual” reliance on loans despite worsening economic hardship across the country.
He argued that the administration, elected on promises of economic recovery, has instead become associated with what he termed excessive borrowing, while Nigerians continue to face rising inflation, high energy costs, food insecurity, and declining purchasing power.
Atiku questioned the justification for continued borrowing despite government claims that economic reforms—including subsidy removal, foreign exchange unification, and improved revenue generation—have strengthened public finances.
According to him, Nigeria risks slipping back into a debt crisis reminiscent of the pre-2005 Paris Club era, warning that recent borrowing trends could undermine gains achieved through past debt relief efforts.
He further called on the World Bank and other international lenders to enforce stricter transparency and accountability measures before approving additional loans to Nigeria, insisting that credit facilities should be tied to measurable developmental outcomes.
Atiku also urged the Federal Government to publish a detailed breakdown of all loans obtained since May 2023, including terms, disbursement status, and project implementation records.
He concluded that governance should not be reduced to continuous borrowing, stressing that economic progress requires discipline, productivity, and accountability rather than accumulating debt.
The Federal Government has yet to officially respond to the latest remarks. However, it has consistently defended its borrowing strategy, stating that most loans are concessional and directed toward infrastructure, social protection, and economic stabilisation efforts amid ongoing reforms.
