- Safiu Kehinde
Former Nigerian Vice President, Atiku Abubakar, has faulted President Bola Tinubu’s fresh external and domestic loan request, labelling it a reckless and dangerous Ponzi scheme.
NPO Reported the President’s letter to the National Assembly on Wednesday, requesting approval of plan to take $ $21.5 billion external loan and a N758 billion domestic bond to settle outstanding pension liabilities and other expenses.
Reacting in a post on his X handle on Friday, Atiku warned that the loan if approved will raise Nigeria’s total public debt from N144.7 trillion to a crushing N183 trillion.
This, according to the 2023 Peoples Democratic Party’s (PDP) Presidential candidate, threatens the future of Nigeria and generations yet unborn.
“The announcement by the Tinubu-led APC government to pursue fresh external and domestic loans is a reckless and dangerous move that threatens the future of Nigeria and generations yet unborn.
“Despite national outrage, this administration is pushing ahead with plans to borrow $21.54 billion, €2.19 billion, and ¥15 billion — an equivalent of over $24 billion, which is more than 60% of Nigeria’s total foreign exchange reserves.
“This borrowing spree will raise our total public debt from ₦144.7 trillion to a crushing ₦183 trillion.” Atiku wrote.
He stressed further that the loan will compound the country’s alarming debt burden which, according to him, jumped by 65.6% since Tinubu assumed office.
In what he described as an Tinubu’s addiction, Atiku accused the President of turning public finance to Ponzi scheme whereby money is borrowed to pay debt.
“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. Nigeria is now caught in a vicious cycle that mortgages the future to pay for the past.
“This is not just unsustainable — it is immoral. The Tinubu administration is borrowing money not for development but to service existing loans, fueling a debt spiral that leaves nothing for infrastructure, education, healthcare, or jobs.” He said.
Atiku claimed the debt profile had since the All Progressives Congress (APC) took the helm of power in 2015 skyrocketed by 1,048% from the N12.6 trillion recorded before the APC came on board.
“This move comes while Nigeria’s debt burden is already at alarming levels.
“As of December 31, 2024, public debt stood at $94 billion (₦144.7 trillion).
“Since President @officialABAT assumed office in 2023, public debt has jumped by 65.6%.
“Under the APC-led administration since 2015, public debt has ballooned by 1,048%, from ₦12.6 trillion to ₦144.7 trillion
“The debt-to-GDP ratio has exceeded 50%.
“The debt-service-to-revenue ratio is over 130%, meaning the government now spends more on repaying loans than it earns.” He said.
The ex-Vice President called for the halt of the borrowing plan, stressing that Nigeria must not be sold into debt slavery.
“We warn that this is economic sabotage in plain sight.
“We demand that this reckless borrowing plan be halted immediately.
“We call on lawmakers, civil society organizations, the media, and the international community to take urgent action to stop this looming catastrophe.
“Nigeria must not be sold into debt slavery.” He added.