Former Vice-President Atiku Abubakar has called on the National Assembly to reject President Bola Tinubu’s request for a $7.7 billion external loan, expressing concerns over Nigeria’s growing debt burden and the implications for the country’s economy.
Gatekeepers News reports that in a statement issued on Wednesday by Phrank Shaibu, Director of Strategic Communication of the ADC Presidential Campaign Council, Atiku questioned the frequency of the Federal Government’s foreign borrowing requests, warning that successive loans would increase Nigeria’s debt obligations.
He said the latest request came barely days after another proposal seeking approval for 20.52 billion dollars and 1.045 billion euros in external loans was presented to the National Assembly.
Atiku argued that Nigerians should not be expected to accept repeated borrowing as routine government business, insisting that every new foreign loan would eventually become a financial obligation for citizens.
He also faulted the President for failing to provide sufficient details about the projects to be financed, their costs and the repayment conditions.
The former Vice-President particularly questioned the provision that interest rates and repayment periods would be determined by prevailing market conditions when the funds were raised.
Atiku said the National Assembly should demand a comprehensive list of projects, clear funding allocations and a credible repayment plan before considering the request.
He also called on international lenders and financial institutions to suspend further loans to the Tinubu administration until it provides transparent borrowing terms and accounts for the benefits of previous loans.
Atiku further criticised the administration over the rising cost of living, arguing that Nigerians continued to struggle with increasing economic pressures despite the removal of the petrol subsidy.
Meanwhile, Tinubu’s October 26 letter seeking approval for the 7.7-billion-dollar loan was read by Senate President Godswill Akpabio during plenary on Wednesday.
The President said the proposed borrowing would cover the external component of the 29.2-trillion-naira borrowing approved in the 2026 budget to finance part of the country’s 31.4-trillion-naira budget deficit.
He said the funds would be sourced through multilateral and bilateral loans, International Monetary Fund facilities, bridge financing and Eurobond issuance, with greater emphasis on Eurobonds.
The proposed borrowing is expected to finance projects in defence and security, transportation, agriculture, power, education and healthcare.
Akpabio subsequently referred the request to the Senate Committee on Local and Foreign Debts for further consideration.
