Former Vice President Atiku Abubakar has issued a scathing rebuke of President Bola Tinubu’s latest move to secure a fresh round of external and domestic loans, describing it as a “reckless and dangerous” decision that threatens to mortgage Nigeria’s future.
By Chimezie Godfrey
Former Vice President Atiku Abubakar has issued a scathing rebuke of President Bola Tinubu’s latest move to secure a fresh round of external and domestic loans, describing it as a “reckless and dangerous” decision that threatens to mortgage Nigeria’s future.
In a strongly worded statement released on Wednesday, Atiku warned that the federal government’s borrowing plan — which includes $21.54 billion, €2.19 billion, and ¥15 billion in new loans — could push Nigeria’s total public debt from ₦144.7 trillion to ₦183 trillion, representing a 27% jump in less than a year.
“This is not just unsustainable — it is immoral,” Atiku said.
“The Tinubu administration is borrowing not for development but to service existing loans, fueling a debt spiral that leaves nothing for infrastructure, education, healthcare, or jobs.”
The proposed borrowing, which translates to over $24 billion, amounts to more than 60% of Nigeria’s current foreign exchange reserves, raising widespread alarm among economists, civil society groups, and opposition leaders.
Atiku accused the All Progressives Congress (APC)-led administration of endangering Nigeria’s economic sovereignty through what he termed a “Ponzi scheme of public finance.”
“This addiction to borrowing, entrenched under the APC-led administration and now accelerated by President Tinubu, has turned public finance into a Ponzi scheme — borrowing to pay debt, then borrowing again to pay interest,” the former Vice President said.
“Nigeria is now caught in a vicious cycle that mortgages the future to pay for the past.”
According to official figures, Nigeria’s public debt has surged dramatically in recent years. As of December 31, 2024, the total stood at $94 billion (₦144.7 trillion). Since President Tinubu took office in May 2023, that figure has reportedly grown by 65.6%.
Under successive APC administrations since 2015, public debt has soared by over 1,048%, from ₦12.6 trillion to the current ₦144.7 trillion. The debt-to-GDP ratio has now breached the 50% threshold, while the debt-service-to-revenue ratio has ballooned to over 130%, meaning the government spends more on debt repayment than it earns in revenue.
Atiku described this trajectory as “economic sabotage in plain sight,” warning that future generations of Nigerians may be condemned to debt servitude if urgent corrective measures are not taken.
Atiku called on the National Assembly, civil society organizations, the media, and the international community to intervene and halt what he termed a looming catastrophe.
“We demand that this reckless borrowing plan be halted immediately. Nigeria must not be sold into debt slavery,” he declared.
The statement has sparked fresh national debate on the Tinubu administration’s economic strategy, particularly its heavy reliance on debt to finance government activities amidst dwindling revenues and rising inflation.
While the Presidency is yet to officially respond to Atiku’s claims, administration sources have previously defended their borrowing plans, arguing that the funds are necessary to finance critical infrastructure and social programmes.
However, critics argue that little evidence of such development spending exists on the ground, and that much of the borrowed funds are channeled toward debt servicing and recurrent expenditure.