Former Vice President Atiku Abubakar has strongly criticised the Federal Government's continued resort to external borrowing, describing the Tinubu administration's growing debt profile as reckless, unsustainable and dangerous to Nigeria's economic future.
Atiku's reaction followed reports that the Federal Government is in discussions with the World Bank for another $1.25 billion loan facility — a move that could rank among the largest fresh borrowings secured under the current administration despite worsening economic hardship across the country.
In a statement issued through his media aide, Olusola Sanni, the former vice president said it was troubling that an administration elected on promises of economic recovery and reform has instead become synonymous with what he described as “industrial-scale borrowing” without visible improvements in the lives of Nigerians.
“This borrowing binge is becoming reckless, opaque and dangerously habitual. The loans are accumulating at a burden too heavy for Nigerians to bear,” Atiku stated. “Nigerians were told these loans would revive infrastructure, improve electricity supply and stimulate economic recovery. Yet ordinary citizens still live in darkness, roads remain death traps, businesses are shutting down under crippling energy costs, and hunger has become a national emergency.”
He warned that the country's increasing dependence on foreign loans raises serious concerns about fiscal discipline, transparency and long-term economic sustainability. According to him, international financial institutions such as the World Bank must begin to exercise stricter oversight and insist on accountability before approving additional credit facilities for Nigeria.
“At this point, it has become necessary for the World Bank and other creditors to apply more prudent safeguards and insist on strict compliance with the terms and measurable outcomes attached to these loans,” he said.
Atiku also faulted what he described as contradictions in the Federal Government's economic narrative, particularly claims of improved revenue generation alongside rising debt exposure. “The IDA loans are facilities traditionally meant for extremely poor countries, and Nigeria now ranks alongside Bangladesh and Pakistan among nations with the highest exposure to World Bank lending. This sharply contradicts the administration's repeated claims about increased revenue generation and economic stability,” he added.
The former vice president recalled Nigeria's successful exit from the Paris Club debt burden during the administration of former President Olusegun Obasanjo, arguing that the gains achieved through fiscal discipline and economic reforms are now being reversed.
“It is deeply ironic that the same country which painstakingly exited the Paris Club debt trap through fiscal discipline, diplomatic credibility and reform-driven leadership under the Obasanjo-Atiku administration is now sliding back into another era of dangerous debt dependency,” he stated. “Between May 2023 and now, the Tinubu administration has secured massive loans from the World Bank under broad economic objectives whose implementation Nigerians can barely verify.”
Atiku described the 2005–2006 debt relief secured by Nigeria as a product of tough negotiations, responsible economic management and international confidence, warning that the legacy was now being eroded. “The historic debt relief was not accidental. It was earned through difficult negotiations, prudent management and international goodwill. Sadly, that hard-earned legacy is now being squandered with alarming irresponsibility,” he said.
He further criticised what he termed the administration's apparent belief that borrowing alone amounts to governance. “This administration appears to believe that borrowing is governance. It is not. Loans are not achievements. Debt is not development,” he declared. “And mortgaging the future of unborn Nigerians to fund present incompetence is not economic management — it is economic vandalism.”
Atiku also urged global financial institutions and development partners to reconsider their approach to lending to governments that fail to demonstrate transparency and measurable impact. “We must begin to ask difficult questions, not only of the borrowers but also of the lenders,” he said. “No responsible lender should ignore the warning signs. A government that continues borrowing while citizens see no meaningful improvement in electricity, healthcare, education, infrastructure or living standards raises legitimate concerns about fiscal credibility and governance discipline.”
According to him, Nigeria cannot continue operating a cycle where every economic challenge is addressed through fresh borrowing. “At some point, creditors must ask themselves whether they are funding development or merely enabling dysfunction,” he stated.
