Former Vice President Atiku Abubakar and a group of economists have openly expressed strong opposition to President Bola Tinubu’s request for a $516 million external loan, raising concerns about Nigeria’s growing debt burden and the long-term impact on the economy.
The criticism followed the President’s request for legislative approval to secure the loan, which is expected to fund major infrastructure projects. However, Atiku and economic experts argue that the timing and structure of the borrowing raise serious questions about fiscal responsibility and transparency.
In their response, they warned that Nigeria is already struggling with high debt levels, and adding more foreign loans could worsen the country’s financial situation. They stressed that government borrowing should be carefully planned, clearly justified, and supported by transparent repayment strategies that do not overburden future generations.
According to Atiku, “At a time when Nigeria is already groaning under the weight of unsustainable debt, the resort to yet another foreign loan without transparent terms, clear cost-benefit analysis, and a credible repayment framework raises profound questions about prudence and accountability.”
He further stated that Nigerians expect leadership that prioritises sustainable development rather than policies that increase financial risks. He warned that borrowing without proper planning could trap the country in a cycle of debt that future generations will struggle to escape.
Atiku added, “What Nigerians expect is not just ambitious projects, but responsible financing. Development must not become a euphemism for deepening debt traps that generations yet unborn will be forced to repay.”Economists supporting this position also argued that while infrastructure development is important, it must be balanced with economic realities. They noted that Nigeria should explore alternative funding options such as improving revenue generation, reducing waste, and strengthening public-private partnerships instead of relying heavily on external borrowing. They also questioned the transparency of some loan-backed projects, urging the National Assembly to carefully scrutinise the terms of the $516 million request before approval. According to them, accountability in public borrowing is essential to avoid misuse of funds and ensure value for money.
Atiku also referenced past concerns about government borrowing practices, warning against repeating patterns that could deepen economic hardship. He emphasised that infrastructure projects must be implemented through transparent procurement processes and not become channels for favoritism or poor financial decisions.
He concluded that Nigeria must strike a balance between development ambitions and financial discipline, stressing that borrowing should only be done when it is clearly sustainable and beneficial to the wider population.The debate adds to ongoing national discussions about debt management, fiscal responsibility, and the best approach to funding Nigeria’s infrastructure needs in a challenging economic environment.
