Former Vice President and presidential candidate of Peoples Democratic Party (PDP) in the 2023 general election, Atiku Abubukar, yesterday accused the President Bola Tinubu government of mortgaging Nigeria’s future by taking too many loans.
Atiku said the decision to take further loans was not only reckless but also a dangerous move that threatened the future of citizens and generations yet unborn.
National President of Nigerian Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA), and Centre for Private Enterprises (CPPE) also raised concerns over the federal government’s growing appetite for public borrowings, especially given the significant disparity between actual oil production levels and budgeted projections.
They also expressed worry over public debt sustainability amid fiscal challenges.
However, analysts said the federal government’s new borrowing requests could help narrow the fiscal deficit in the 2025 budget if utilised for development purposes.
The reservations came against the backdrop of Tinubu’s formal request for the approval of the National Assembly to secure a new wave of multi-currency loans amounting to approximately $23.5 billion, €2.265 billion, ¥15 billion, and N757.9 billion, totalling about N45 trillion when converted to the naira.
The borrowing plan spanning multiple international lenders and development institutions marks one of the most ambitious external financing proposals of the Tinubu administration.
Specifically, the president sought approval to raise up to $2 billion in capital from the domestic debt market.
But there are growing concerns over the continued public debt accumulation by the current administration amid elevated borrowings from previous administrations.
In a statement he signed, 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”.
The former vice president stated, “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, which is more than 60 per cent of Nigeria’s total foreign exchange reserves. This borrowing spree will raise our total public debt from N144.7 trillion to a crushing N183 trillion.”
He explained that this was coming at a time when Nigeria’s debt burden was already alarming.
According to Atiku, “As of December 31, 2024, public debt stood at $94 billion (N144.7 trillion).
“Since President Tinubu assumed office in 2023, public debt has jumped by 65.6 per cent.
“Under the APC-led administration since 2015, public debt has ballooned by 1,048 per cent, from N12.6 trillion to N144.7 trillion
“The debt-to-GDP ratio has exceeded 50 per cent.
“The debt-service-to-revenue ratio is over 130 per cent, meaning the government now spends more on repaying loans than it earns.”
Atiku stated, “This is not just unsustainable — it is immoral.
(FROM: THISDAY)
