Former Vice President Atiku Abubakar has criticised President Bola Tinubu over a fresh request to secure a $516 million external loan, cautioning that Nigeria must avoid what he described as “blind borrowing” under the guise of development.
The criticism follows a formal communication by Tinubu to the National Assembly, specifically the Senate, seeking legislative approval to obtain a loan estimated at $516,333,077. The proposed borrowing, according to the presidency, is intended to finance critical infrastructure and development projects across the country, particularly those aimed at improving connectivity and boosting economic growth.
However, Atiku, who spoke through his Senior Special Assistant on Public Communication, Phrank Shaibu, expressed deep concern over what he termed Nigeria’s already mounting and potentially unsustainable debt profile. In a statement released on Wednesday, the former vice president acknowledged the importance of infrastructure development but insisted that such initiatives must be pursued within the framework of sound financial management and accountability.
He argued that while Nigerians are not opposed to borrowing in principle, especially when it is directed at projects that can stimulate economic expansion and improve living standards, the process must be guided by transparency and prudence. According to him, the lack of clarity surrounding the terms of the proposed loan raises questions about the government’s fiscal discipline.
“At a time when Nigeria is already groaning under the weight of unsustainable debt, the resort to yet another foreign loan, without transparent terms, clear cost-benefit analysis, and a credible repayment framework, raises profound questions about prudence and accountability,” Atiku stated.
The former vice president emphasised that citizens expect not just ambitious developmental plans but also responsible financing strategies. He warned that indiscriminate borrowing without a clearly defined repayment structure could further strain the country’s economy and saddle future generations with heavy financial obligations.
In his remarks, Atiku stressed that development should not become a convenient justification for increasing national debt without adequate oversight. He noted that while infrastructure remains critical to national progress, the means of financing such projects must not compromise the country’s long-term economic stability.
“What Nigerians expect is not just ambitious projects, but responsible financing. Development must not become a euphemism for deepening debt traps that generations yet unborn will be forced to repay,” he said.
Atiku also drew attention to past controversies surrounding major infrastructure deals in Nigeria, warning against repeating what he described as questionable procurement practices. He specifically referenced concerns raised over the award process for the Lagos-Calabar Coastal Highway, a flagship project of the current administration that has attracted public scrutiny.
According to him, the highway project sparked widespread debate over issues such as transparency, due process, and value for money, with critics alleging that the procurement process lacked competitive bidding and sufficient accountability. He cautioned that similar concerns must not arise in the execution of projects tied to the new loan request.
“Nigerians have not forgotten the serious questions surrounding the opaque award process of the Lagos-Calabar Coastal Highway, where due process, competitive bidding, and value-for-money considerations were widely called into question. We must not replicate such a troubling precedent,” Atiku stated.
He further underscored the need for strict adherence to Nigeria’s procurement laws in all government dealings, particularly those involving borrowed funds. According to him, every loan secured in the name of the Nigerian people must be managed with the highest level of transparency and accountability to ensure that the funds are used efficiently and for their intended purposes.
“Every kobo borrowed in the name of the Nigerian people must be matched with transparency, accountability, and strict adherence to procurement laws,” he added.
Atiku’s comments come at a time when Nigeria continues to grapple with fiscal pressures, including revenue challenges, currency fluctuations, and rising debt servicing costs. Economic analysts have repeatedly warned that the country’s debt profile, while still within certain thresholds, is becoming increasingly burdensome due to the high proportion of revenue allocated to servicing existing loans.
The debate over borrowing has remained a contentious issue in Nigeria’s economic discourse, with proponents arguing that loans are necessary to fund infrastructure gaps and stimulate growth, while critics caution against excessive reliance on debt without corresponding improvements in revenue generation and economic productivity.
Supporters of the Tinubu administration have maintained that the proposed loan forms part of a broader strategy to address critical infrastructure deficits and position the economy for long-term growth. They argue that investments in transportation, energy, and other key sectors are essential to unlocking Nigeria’s economic potential and improving competitiveness.
Nevertheless, Atiku warned that borrowing without a well-articulated plan could lead to unintended consequences. He stressed that development anchored on opaque financial practices and rising debt could ultimately undermine the very progress it seeks to achieve.
In concluding his statement, the former vice president issued a stark warning about the long-term implications of unchecked borrowing, urging the government to prioritise fiscal responsibility and transparency in all its financial decisions.
“Nigeria must build, but Nigeria must not borrow blindly. Progress anchored on opacity and debt accumulation is neither progress nor leadership; it is postponement of crisis,” he said.
The Senate is expected to deliberate on the loan request in the coming days, as lawmakers weigh the potential benefits of the proposed projects against concerns about the country’s growing debt burden. The outcome of the deliberations will likely shape the next phase of Nigeria’s fiscal policy and infrastructure development agenda.
