Former Vice President Atiku Abubakar has strongly criticized President Bola Tinubu’s administration over its approval of new loans, labeling the policies as “bone-crushing” for Nigerians and detrimental to the country’s economy. Atiku’s comments came after the National Assembly recently approved Tinubu’s request for a N1.7 trillion loan from external sources.

In a statement issued in Abuja, Atiku expressed deep concern about Nigeria’s growing debt burden, citing a recent World Bank report that ranks Nigeria as the third most indebted nation to the International Development Association (IDA). He pointed out that this comes at a time when the government is seeking additional loans to cover a shortfall in the 2024 budget.

“This report is coming just as the government has sent a proposal to the National Assembly signaling an intention to borrow an additional N1.7 trillion through Euro Bonds,” Atiku said. Atiku’s main concern lies with the exchange rate benchmark set for the proposed loan, which is based on an exchange rate of 1 USD to N800, even though the current rate is over N1,600 to 1 USD, according to the Central Bank of Nigeria.

He expressed frustration over Nigeria’s worsening debt situation, criticizing the National Assembly for enabling the approval process. Atiku questioned the need for further borrowing, especially given the government’s earlier claims of record-high revenue collections by the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service.

“Why then are they still borrowing? There is something they are not telling Nigerians, even as they face the consequences of failed trial-and-error policies and loan mismanagement,” Atiku remarked.

He warned that the unregulated borrowing and the misuse of these loans are placing unsustainable pressure on the economy and citizens. Atiku also accused the government of using the loans to sustain a corrupt system rather than addressing the country’s pressing infrastructure and development needs.

A report by budget monitoring group Budgit further criticized the 2024 budget, describing it as disorganized due to “pork” expenditures.

Reflecting on Nigeria’s past, Atiku expressed personal frustration, noting that just a few years after President Obasanjo’s administration successfully reduced the country’s foreign debt, Nigeria is now once again facing the same problem.

“It is time we apply more caution and apply arithmetic to the loan frenzy,” Atiku concluded, urging the government to reconsider its borrowing strategy.