Atiku slams Tinubu over World Bank loan plans, describes debt culture as ‘economic vandalism’

Former Vice President Atiku Abubakar has launched a fresh attack on President Bola Tinubu’s government over reports that the Federal Government is seeking additional facilities worth $1.25 billion from the World Bank, warning that the country’s rising debt profile is becoming unsustainable.

Atiku, in a statement issued on Sunday in Abuja through his media aide, Olusola Sanni, accused the Tinubu administration of plunging Nigeria deeper into debt without any real improvement in the living conditions of its citizens.

This former presidential candidate described the government’s increasing dependence on foreign loans as irresponsible and lacking in transparency.

“This excessive borrowing has become reckless, unclear and a dangerous habit. This borrowing comes with a burden too heavy for Nigerians to bear,” Atiku said.

He argued that despite repeated assurances by the Federal Government that the loans were intended to support infrastructure, power supply and economic recovery, the general Nigerian public is yet to feel the impact.

“Nigerians are told that these loans are aimed at infrastructure, electricity and economic recovery. Yet the average citizen is still living in darkness, the streets are still death traps, businesses are collapsing due to high energy costs, and hunger has become a national epidemic,” he said.

Atiku also questioned the consistency of the government’s economic narrative, noting that the increasing number of concessional loans contradicted official claims of increasing revenues.

Referring specifically to loans from the International Development Association which is part of the World Bank, he said that Nigeria’s current debt exposure places Nigeria among countries classified as economically vulnerable.

“IDA loans are facilities provided to very poor countries and are currently tied with Bangladesh and Pakistan as the top countries in the world with the highest loan exposure to the World Bank. This data contradicts the Tinubu administration’s claims that the government has stepped up revenue generation efforts,” he said.

Also read: Kidnapping at school in Oyo triggers security alert in Osun as Adeleke revamps safe schools program

The former Vice President further compared the current debt accumulation with the debt relief obtained during the administration of former President Olusegun Obasanjo, and stressed that the progress achieved then was now being eroded.

“It is ironic that a country that trudged out of the Paris Club debt trap through fiscal discipline, diplomatic credibility and reform-driven leadership during the Obasanjo-Atiku administration in 2005-2006 is now being dragged back into a new era of debt dependency,” he said.

“This historic debt relief was not a coincidence. It was achieved through tough negotiations, careful management, and international goodwill. Today, that legacy is squandered with alarming irresponsibility,” Atiku added.

He criticized what he described as the government’s belief that large loans equate to economic management and development.

“This administration seems to believe that borrowing is governance. It is not. Loans are not achievement. Debt is not development. And mortgaging the future of unborn Nigerians to fund their present incompetence is not economic management – ​​it is economic vandalism,” Atiku said.

The former Vice President also directed his criticism at international financial institutions, and urged lenders to demand greater accountability and transparency before providing additional credit facilities to Nigeria.

“No responsible lender should ignore these warning signs. A government that continues to borrow while the public sees no real improvements in electricity supply, health services, education, or infrastructure raises legitimate concerns about fiscal credibility and government discipline,” he said.

“At some point, creditors have to ask themselves whether they are funding development or allowing dysfunction,” he added.

Atiku further called on the Federal Government to publish comprehensive details of all loans obtained since President Tinubu assumed office in May 2023.

According to him, Nigerians have the right to know the conditions attached to loans, how much has been disbursed and the specific projects associated with each loan arrangement.

This latest criticism adds to the political debate regarding Nigeria’s rising debt profile and the Federal Government’s continued reliance on foreign borrowing to finance infrastructure and economic reforms amidst worsening inflation and economic hardship across the country.