Former Vice President Atiku Abubakar has criticised the administration of President Bola Tinubu over reports that Nigeria is seeking a fresh $1.25bn loan from the World Bank, warning that the country is sliding deeper into unsustainable debt without tangible benefits for citizens.
In a statement released on Sunday through his media aide, Olusola Sanni, Atiku described the proposed borrowing as further evidence of what he called the government’s “reckless” and “habitual” dependence on loans.
He argued that the trend was alarming at a time Nigerians are facing worsening economic hardship.
“This borrowing binge is becoming reckless, opaque, and dangerously habitual.
“The loans are coming with a burden of weight too heavy for Nigerians to bear. Nigerians were told these loans were for infrastructure, power, and economic recovery. Yet the average citizen still lives in darkness, roads remain death traps, businesses are collapsing under crushing energy costs, and hunger has become a national epidemic,” Atiku said.
He also urged the World Bank and other international lenders to tighten oversight on future facilities granted to Nigeria.
“At this point it has become necessary to demand that the World Bank and, indeed, other creditors apply more prudent measures in ensuring significant compliance to the terms and conditions of these loans,” he added.
Atiku questioned the justification for continued borrowing despite government claims that reforms such as fuel subsidy removal, exchange rate unification, and improved revenue generation have strengthened public finances.
He said, “The IDA loans are facilities granted to extremely poor countries and currently shares the same spot with Bangladesh and Pakistan as top countries in world with highest loan exposure to the World Bank.
“This data is diametrically opposed to claims by the Tinubu administration that the government had increased its revenue generation drive.”
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The former presidential candidate further warned that Nigeria risks returning to a debt crisis similar to the one it exited following the Paris Club debt relief in 2005–2006.
“It is deeply ironic that the same nation which painstakingly exited the Paris Club debt trap through the fiscal discipline, diplomatic credibility, and reform-driven leadership of the Obasanjo-Atiku administration in 2005–2006 is now being dragged back into a fresh era of debt dependency.
“Between May 2023 and now, the Tinubu administration has obtained record massive loans from the World Bank under the titles of objectives that are difficult to verify its implementation.
“The historic debt relief of 2006 was not accidental. It was earned through tough negotiations, prudent management, and international goodwill. Today, that legacy is being squandered with alarming irresponsibility,” he stated.
Atiku insisted that borrowing should not be mistaken for governance.
“This administration appears to believe that borrowing is governance. It is not. Loans are not achievements. Debt is not development. And mortgaging the future of unborn Nigerians to fund present incompetence is not economic management—it is economic vandalism.
“We must begin to ask difficult questions, not just of the borrowers, but also of the lenders.”
He also called on international financial institutions to demand measurable outcomes before approving further credit for Nigeria.
“International financial institutions and credit agencies must exercise greater caution and insist on strict transparency, accountability, and measurable impact before continuing to extend credit facilities to an administration that has shown little evidence of efficient utilisation.
“No responsible lender should ignore the warning signs. A government that keeps borrowing while citizens see no tangible improvement in electricity supply, healthcare, education, or infrastructure raises legitimate concerns about fiscal credibility and governance discipline,” he said.
Atiku warned that continued reliance on borrowing could deepen Nigeria’s economic challenges.
“Nigeria cannot continue down this dangerous path where every economic challenge is answered with another loan request. At some point, creditors must ask themselves whether they are funding development or enabling dysfunction.
“The Tinubu administration must understand that a nation cannot borrow its way out of incompetence. Governance requires vision, discipline, productivity, and trust—not endless promissory notes signed against the future of a suffering people.”
He further urged the Federal Government to publish detailed records of all loans obtained since May 2023, including terms and project allocations.
The Federal Government has yet to respond to the allegations as of the time of filing this report.