Former Vice President, Atiku Abubakar, has characterised the loans taken by President Bola Tinubu as burdensome for Nigerians, warning that they will place unbearable strain on the economy.
The 2023 presidential candidate of the Peoples Democratic Party, said, “These Tinubu’s loans are bone-crushing for Nigerians and are bringing insufferable pressure on the economy, especially when they are not properly negotiated or utilised.”
The former Vice President’s criticism came on Thursday after the Senate approved President Tinubu’s request to secure a $2.209 billion external loan.
The approval followed the presentation of the Senate Committee on Local and Foreign Debts’ report, delivered by its Chairman, Aliyu Wamakko, during the plenary session.
In response to this and other previous approvals, Atiku expressed concern that Nigeria is sinking deeper into debt, with the National Assembly once again acting as an accomplice.
He stated, “The recent report released by the World Bank, showing Nigeria as the third most indebted country to the International Development Association (IDA), is very concerning.
“This report is coming just as the government has already sent a proposal to the National Assembly signalling an intention to borrow an additional N1.7tn to cover a shortfall in the 2024 budget through Euro Bonds.
“What makes this particular loan proposal even more concerning is that it is benchmarked at the exchange rate of 1 USD to N800, whereas the current exchange rate from the Central Bank of Nigeria stands at over N1,600 to 1 USD.
“Nigeria is sinking further into debt, and the National Assembly has become an accomplice once more. Tinubu had, in July this year, boasted that the FIRS and Customs under his watch had collected all-time high revenues to finance the Budget. Why, then, are they still borrowing? There is something they are not telling Nigerians, even as they are being crushed by a combination of their failed trial-and-error policies and loan rackets.”
He stressed that it is time for Nigeria to exercise more caution and apply careful calculations to the ongoing loan spree.
Atiku added, “It is concerning that the voracious appetite for these humongous loans is powered by corruption and not for infrastructure and development needs. A report by Budgit, a budget watchdog, has disclosed that the 2024 Budget is a mess due to the level of pork associated with it.
“I feel a sense of personal agony seeing that just a few years after the administration of President Obasanjo took our country out of foreign indebtedness, we are today back at the top spot in the same conundrum.”
