Former Vice President Atiku Abubakar has strongly criticized President Bola Tinubu’s plan to secure $24 billion in new external loans, calling it imprudent, unsustainable, and a serious threat to Nigeria’s economic stability.
In a statement released on Wednesday in Abuja, Atiku described the proposal as “a blatant act of economic sabotage,” warning that the increasing reliance on foreign debt would only deepen Nigeria’s fiscal challenges and burden future generations.
The loan request, which includes $21.54 billion, €2.19 billion, and ¥15 billion, would push the nation’s total debt from ₦144.7 trillion to an estimated ₦183 trillion — a sum that surpasses 60 percent of Nigeria’s foreign reserves.
“This move comes while Nigeria’s debt burden is already at alarming levels. As of December 31, 2024, public debt stood at $94 billion (₦144.7 trillion). Since President Tinubu assumed office in 2023, public debt has jumped by 65.6%,” Atiku said.
He further noted that under the All Progressives Congress (APC)-led administration since 2015, the country’s debt profile has skyrocketed by 1,048% — from ₦12.6 trillion to ₦144.7 trillion.
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According to him, Nigeria’s key economic indicators paint a worrying picture: the debt-to-GDP ratio has exceeded 50%, and the debt-service-to-revenue ratio is over 130%.
“This is not just unsustainable — it is immoral,” Atiku said. “The Tinubu administration is borrowing money not for capital development, but merely to service existing debt, fueling a dangerous spiral that leaves no room for investment in infrastructure, education, healthcare, or job creation.”
He likened the current debt model to a Ponzi scheme, where the government borrows simply to pay back previous loans and interest, trapping the country in a perpetual cycle of debt.
“Nigeria is now caught in a vicious cycle that mortgages the future to pay for the past,” he warned.
Sounding the alarm, the former vice president urged legislators, civil society groups, the press, and global stakeholders to unite in opposing the proposed borrowing plan. He warned that the alarming plunge into unsustainable debt must be halted immediately, stressing that Nigeria could not afford to be shackled by what he described as the chains of debt servitude.