Former Vice President Atiku Abubakar has alleged that the loans acquired by the President Bola Tinubu administration are powered by corruption and not infrastructure and development needs.
Tinubu on Tuesday wrote to the National Assembly, seeking approval for a N1.767 trillion ($2.209 billion) new external borrowing plan in the 2024 Budget (Appropriation Act).
However, despite concerns raised by civil society and experts, less than 48 hours later, the National Assembly approved Tinubu’s request.
If approved, the loan will be used to part-finance the budget deficit of N9.7tn for the 2024 budget.
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However, Atiku, a former Peoples Democratic Party (PDP) presidential candidate, said this loan proposal is more concerning because 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.
Atiku in a statement added that while Nigeria is sinking further in debt, the National Assembly has become an accomplice once more, apparently referring to its approval of loan requests under the immediate past Muhammadu Buhari presidency.
According to the Nigerian Bureau of Statistics (NBS), “Nigeria’s public debt stock which includes external and domestic debt stood at N87.38 trillion (US$113.42 billion) in Q2 2023 from N49.85 trillion (US$ 108.30 billion) in Q1 2023, indicating a growth rate of 75.27% on a quarter-on-quarter basis.”
NBS further said, “Total external debt stood at N33.25 trillion (US$43.16 billion) in Q2 2023, while total domestic debt was N54.13 trillion (US$70.26 billion).”
But according to Atiku, “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 signalling 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 in debt, and the National Assembly has become an accomplice once more. Tinubu had, in July this year, boasted that the FIRS and Customs under his watch have collected all-time high revenues to finance the Budget. Why then 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 Tinubu’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.
“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 that we apply more caution and apply arithmetic to the loan frenzy,” he said.
