Atiku, AfDB, and PRP criticize the government's loan strategy despite 'strong'

Atiku, AfDB, and PRP criticize the government's loan strategy despite 'strong' IGR performance.

The concerns raised by various stakeholders, including former Vice President Atiku Abubakar, the African Development Bank (AfDB), the Peoples Redemption Party (PRP), and the Unified Nigeria Youth Forum (UNYF), highlight the growing unease over the government's debt strategy. Atiku specifically accused the Tinubu administration of borrowing to service existing debts rather than for development purposes, a situation he likened to a Ponzi scheme. The AfDB report underscores the issue of debt sustainability, indicating that despite a relatively low debt-to-GDP ratio, Nigeria may face high debt burdens due to significant interest payments. The PRP called for an end to what it sees as a mortgaging of the nation's future, while the UNYF advocated for a focus on monetizing idle public assets and enhancing internal revenue generation.

Former Finance Minister, Dr. Kalu Idika Kalu, offered a differing view, stating that borrowing can be beneficial if used to create value. He emphasized the importance of investing borrowed funds in job creation, capacity building, and infrastructure development. Meanwhile, the Rescue Movement for New Nigeria lamented the lack of visible impact from the government's borrowing on public infrastructure and social welfare.

These reactions come as President Tinubu's administration seeks approval for additional loans, which would increase the country's total debt to approximately ₦183 trillion. Critics argue that such borrowing is unsustainable and may lead to further economic challenges, including higher debt servicing costs and reduced fiscal space for essential services. The call for transparency in government spending and a reassessment of fiscal priorities is growing louder, with many questioning the rationale behind the government's persistent borrowing amidst reports of fiscal mismanagement and opaque use of funds.