The Allied Peoples Movement's Makinde-Daura Presidential Campaign Organisation has denounced President Bola Ahmed Tinubu's request for $20.52 billion and €1.045 billion in foreign loans. The organisation's Director of Strategic Communications, Richard Ihediwa, expressed concern over the government's existing debt obligations and the potential risks of accumulating more debt. This criticism comes amid a backdrop of Nigeria's struggling economy and inadequate public services.
The campaign organisation warned that Nigeria may face an economic crisis similar to that of Egypt under Khedive Isma'il in the 19th century if it continues down the path of excessive borrowing. They argued that successive administrations have justified foreign borrowing for infrastructure development and budget financing, but Nigerians continue to experience worsening economic hardship. The APM demands a credible repayment plan and transparent utilisation of funds.
The organisation questioned how the present administration's overlapping budget cycles had been funded, arguing that the government must account for the proceeds of previous loans before seeking further credit facilities. They cited several loans secured by the Tinubu administration, including a $750 million World Bank loan for the Power Sector Recovery Performance programme and a $500 million loan for institutional strengthening and women's empowerment.
The APM also listed an $800 million loan for conditional cash transfers and another $700 million facility, demanding greater transparency over the implementation and impact of the programmes. They asked the government to disclose the number of women who had benefited from the $500 million loan and the measurable results achieved. The organisation emphasised the need for accountability and transparent utilisation of funds.
The campaign organisation accused the present administration of recklessly accumulating domestic and external debts without commensurate development or a credible repayment plan. They warned that the growing debt burden threatens Nigeria's economic sovereignty and the future of generations yet unborn. The APM argued that the nation's insatiable appetite for foreign loans has reached alarming proportions.
The organisation drew a historical parallel with Egypt under Khedive Isma'il, whose ambitious spending and dependence on foreign borrowing contributed to a severe debt crisis and the erosion of the country's financial independence. The APM warned that Nigeria could suffer a similar fate if it does not adopt a sustainable economic strategy and ensure productive investments and clear accountability for public funds.
The APM criticised President Tinubu for leaving behind a legacy of mounting debt rather than productive investments, shared prosperity, and economic stability. The organisation's statement concluded that every well-meaning Nigerian should be concerned about a government that continues to accumulate debts without demonstrating corresponding development or a credible repayment plan.
Key points
- The APM criticised the Tinubu administration's borrowing plans.
- The organisation warned of economic risks similar to Egypt's 19th-century debt crisis.
- The APM demanded greater transparency and accountability in the utilisation of loan funds.
