Former Vice President Atiku Abubakar has expressed concerns over President Bola Tinubu's request to borrow $7.7 billion, approximately ₦10.79 trillion, to part-finance the 2026 budget deficit. Atiku urged the Senate to thoroughly examine the loan request before taking any legislative action. He emphasized that the Senate must demand a full project list, clear funding allocations, proposed loan terms, and a credible repayment plan.
Atiku, the presidential candidate of the African Democratic Congress (ADC), criticized the frequency of borrowing by the Tinubu administration since it came to office. He questioned the government's approach to economic management, stating that borrowing should not be used as a substitute for sound economic policies. Atiku's concerns were conveyed through a statement by Phrank Shaibu, Director of Strategic Communication, ADC Presidential Campaign Council.
The loan request has raised questions about the government's plans and the potential burden on Nigerians. Atiku noted that barely days after an external borrowing proposal of $20.52 billion and €1.045 billion was presented to the National Assembly, another request for $7.7 billion is now before the Senate. He stressed that Nigerians cannot be expected to treat this relentless borrowing as routine paperwork.
Atiku emphasized that new foreign loans will eventually have to be paid by Nigerians. He called on the Senate to demand transparency and rigorous scrutiny of the loan request, citing concerns about the repayment schedule, interest rate, and other conditions. The President's letter states that the final terms will depend on market conditions when the borrowing is priced.
Atiku also criticized President Tinubu's administration for removing subsidy on petroleum products while emerging as the highest borrowing government in Nigeria's record history. He noted that this administration has unleashed the worst cost of living crisis on Nigerians, with people struggling to afford a decent living and businesses being forced to shut down.
The ADC candidate proposed an alternative plan for the country, vowing to return social welfare to the Nigerian people through the introduction of production-based subsidy on petroleum products. Atiku stated that Nigeria cannot borrow its way out of every budget shortfall and called on the National Assembly to remember that it is accountable to Nigerians, not merely to the executive.
Atiku concluded by urging the National Assembly to make the government answer the questions Nigerians are asking before approving another trillion-naira burden. He emphasized that the Senate must not allow the government to contract foreign debt without full disclosure and rigorous scrutiny.
Key points
- Atiku Abubakar urges Senate to scrutinize President Tinubu's $7.7 billion loan request.
- The loan request is to part-finance the 2026 budget deficit.
- Atiku criticizes the frequency of borrowing by the Tinubu administration.
