Atiku tells Senate to turn down Tinubu’s $7.7bn loan request

Former Vice President Atiku Abubakar has urged the Senate to reject President Bola Tinubu’s recent loan request of $7.7 billion. He warned that this loan would add more pressure on Nigerians and future governments.

Atiku made this statement on Wednesday through Phrank Shaibu, the Director of Strategic Communication for the African Democratic Congress Presidential Campaign Council. He described the government's borrowing habits as worrying.

The proposed $7.7 billion loan, which is about ₦10.79 trillion, is meant to help cover the budget deficit for 2026.

The reaction from Atiku comes just days after the National Assembly received another borrowing proposal. This one was for $20.52 billion and €1.045 billion.

Atiku questioned the government's borrowing plans. He said Nigerians should not treat these requests as normal business. He asked, "What is the problem with this government? Why is President Tinubu making borrowing requests on behalf of Nigeria week in, week out?"

He added, "Every new foreign loan is a bill Nigerians will eventually have to pay. This government cannot keep presenting borrowing as a substitute for sound economic management while families and businesses carry the cost of its failures."

The ADC presidential candidate urged the Senate to carefully examine the latest loan proposal. He insisted that the government must show details about the projects to be funded, their costs, interest rates, repayment schedules, and other conditions attached to the loan.

Atiku also took issue with a part of the President’s letter. It stated that the final loan terms would depend on market conditions when the loan is priced. He said, "Nigerians should not be asked to accept a loan before they know what it will cost the country."

He called on lawmakers to ask for a full project list, clear funding details, and a reliable repayment plan before they think about approving the loan request. He said, "No government should receive a blank cheque to contract foreign debt in the name of budget implementation."

Atiku also urged international lenders to hold off on new loans to Tinubu’s administration until it provides clear loan terms, a solid repayment plan, and proof of the benefits from past loans.

He accused President Tinubu of leading a government that has made life harder for citizens. This is despite the removal of fuel subsidies and ongoing access to foreign loans.

Atiku noted, "Tinubu removed subsidy on petroleum products but has emerged as the highest borrowing government in Nigeria’s record history."

He criticized the administration for not investing enough in infrastructure and for lacking effective social welfare programs. He argued that many Nigerians are struggling to meet their basic needs as the country’s debt continues to grow.

Atiku suggested that his alternative plan would include bringing back social welfare programs. He called this a production-based subsidy on petroleum products.

He maintained that Nigeria cannot keep borrowing to cover every budget deficit. He urged the National Assembly to put the interests of citizens first when considering the loan request.

"The National Assembly must remember that it is accountable to Nigerians, not merely to the executive. Before approving another trillion-naira burden, it must make the government answer the questions Nigerians are asking," he stressed.

This controversy happens at a time when there is ongoing discussion about Nigeria's increasing public debt, the costs of servicing existing debts, and the government's reliance on loans for infrastructure and budget needs. While the Federal Government has often defended borrowing as necessary for development, opposition figures want more transparency and accountability in how public debt is handled.