The former president of Nigeria and Peoples Democratic Party (PDP) 2023 presidential aspirant, Atiku Abubakar has shown concern over the recent report revealing the country as the third most indebted country by World Bank.
Atiku shows concern on X as the present administration is on the brink of borrowing more, which makes him afraid for the country while he accused the National Assembly of being an accomplice to such foolery.
Recall that the World Bank’s latest financials for 2024 showed that Nigeria’s debt to the global lender increased by $600 million in three months from $16.5 billion in June 2024.
“The recent report released by the World Bank, showing Nigeria as the third most indebted country to the International Development Association (IDA), is very concerning.
“This report is coming just when the government has already sent a proposal to the National Assembly signaling an intention to borrow an additional N1.7tn being shortfall in the 2024 budget through Euro Bonds.
“What makes this particular loan proposal even more concerning is that it is benchmarked at the exchange rate of 1 USD to N800, whereas the current exchange rate from the Central Bank of Nigeria stands at over N1,600 to 1 USD.
“Nigeria is sinking further into debt, and the National Assembly has become an accomplice once more.”
The former president queried President Tinubu’s government over the seemingly endless loans despite the report of recovered revenues from governmental agencies that reveals more of the administration’s failure rather than successes, which he opined is draining the country.
He stated further that the loans in questioned are not channeled into developing the country but rather are used to quench the thirst of corruption that has steam deep into the system.
“In July this year, Tinubu boasted that the FIRSNigeria and CustomsNG under his watch had collected all-time high revenues to finance the Budget. Why are they still borrowing?
“There is something that they are not telling Nigerians, even as they are being crushed by a combination of their failed trial-and-error policies and loan rackets.
“These officialABAT’s loans are bone-crushing to Nigerians and bringing insufferable pressure on the economy, especially when they are not properly negotiated and utilized.
“It is concerning that the voracious appetite for these humongous loans is powered by corruption and not for infrastructure and development needs.
“A report by Budgit, a budget watchdog, has disclosed that the 2024 Budget is a mess because of the level of pork associated with it.” Atiku added
The 2023 PDP presidential aspirant expressed sadness over what seems like an effort in futility of the former Olusegun Obasanjo in making Nigeria debt free during his tenure while the present administration feast on plunging it into debt.
“I feel a sense of personal agony seeing that just a few years after the administration of President Obasanjo took our country out of foreign indebtedness, we are today back at the top spot in the same conundrum. It is time to apply more caution and arithmetic to the loan frenzy.” He warned
Nigeria rose to the top three IDA creditors in June 2024 for the first time, from the fourth position the year before. The West African country maintained its position as the third-largest debtor, receiving $2.8 billion from the IDA during Tinubu’s administration.
Nigeria has depended heavily on concessional loans for critical infrastructure financing, especially under President Bola Tinubu.
Nigerian government spent $3.5 billion servicing foreign debts in the first three quarters of 2024, representing a staggering 37.77% increase from the $2.56 billion spent in the corresponding period in 2023.
By: Adeoye Olorunseun Elizabeth
Adeoye.o@thesubstancenews.com
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