Lagos, Nigeria — Former Vice President Atiku Abubakar has criticized the National Assembly for approving President Bola Tinubu’s request for two new foreign loans totaling $6 billion from the United Arab Emirates and the United Kingdom. In a statement, Atiku accused the assembly of failing in its oversight responsibilities, describing the process as a “disturbing erosion of oversight responsibility.”The loans were requested by President Tinubu and were swiftly approved by the Senate and the House of Representatives.
Atiku, a member of the African Democratic Congress (ADC), argued that the National Assembly, which should represent the voice of Nigerians, had become a rubber stamp for the presidency. “The loans were approved without rigorous analysis or debate, “Atiku. “Resorting to fresh borrowing to service existing debts, plug budget gaps, and meet routine obligations is not a strategy—it is a dangerous cycle.
It reflects a troubling absence of fiscal discipline, clear prioritization, and sustainable economic planning.”Nigeria’s total public debt stood at over N87 trillion (about $113 billion) as of mid-2023, driven by new borrowings and exchange rate adjustments. The country’s debt-to-GDP ratio remains moderate compared to some peers, but analysts have flagged the weak revenue base as a major risk.
A significant portion of government revenue is spent on servicing debt, raising concerns about fiscal sustainability.
The International Monetary Fund and the World Bank have advised Nigeria to prioritize revenue mobilization, improve tax collection, and ensure that new borrowings are tied to productive investments. In recent years, the federal government has increasingly relied on external borrowing to finance budget deficits, fund infrastructure projects, and refinance existing obligations.
Source: allafrica
