POLITICS
Atiku Challenges Senate Over Tinubu’s ₦10.79trn Loan Request, Demands Full Disclosure
Atiku Challenges Senate Over Tinubu’s ₦10.79trn Loan Request, Demands Full Disclosure
Former Vice President Atiku Abubakar has urged the Senate to reject or subject to rigorous scrutiny President Bola Tinubu’s latest request for approval to secure a $7.7 billion external loan, equivalent to approximately ₦10.79 trillion.
Atiku, the presidential candidate of the African Democratic Congress (ADC), warned that approving additional foreign borrowing without adequate disclosure could deepen Nigeria’s debt burden and impose further financial obligations on future generations.
In a statement issued on Wednesday by Phrank Shaibu, Director of Strategic Communication of the ADC Presidential Campaign Council, the former vice president questioned the frequency of the Tinubu administration’s borrowing requests.
His reaction followed a fresh communication from the President seeking legislative approval for external borrowing of $7,707,404,882.49 to part-finance the 2026 budget deficit.
Atiku expressed concern that the latest request came barely days after the Federal Government had presented an earlier external borrowing proposal of $20.52 billion and €1.045 billion to the National Assembly.
“What is the problem with this government? Why is President Tinubu making borrowing requests on behalf of Nigeria week in, week out?” he asked.
He argued that Nigerians should not be expected to regard successive borrowing proposals as routine legislative business, insisting that every foreign loan eventually becomes a financial responsibility for the country and its citizens.
“The Senate must scrutinise this proposal line by line. It must demand a full project list, clear funding allocations, the proposed loan terms and a credible repayment plan before considering approval. No government should receive a blank cheque to contract foreign debt in the name of budget implementation,” Atiku said.
Atiku questions purpose of fresh borrowing
The former vice president said the government needed to explain precisely how the proposed funds would be spent, demanding details of the projects, individual allocations, interest rates, repayment schedules and other conditions attached to the facility.
He particularly questioned the President’s disclosure that the final borrowing terms, including interest rates and repayment periods, would depend on prevailing market conditions when the loan was priced.
According to Atiku, lawmakers should not approve a borrowing arrangement without knowing its potential financial implications for the country.
He also challenged the administration to demonstrate how previous loans had translated into measurable improvements in infrastructure, public services and the living conditions of Nigerians.
Atiku accused the Tinubu government of relying excessively on borrowing to address budget shortfalls while households and businesses continued to grapple with rising living costs.
He further argued that the removal of petroleum subsidy had not eliminated the government’s dependence on borrowing, despite the significant economic consequences experienced by citizens.
The ADC chieftain called on international financial institutions and other lenders to suspend fresh lending to the administration until it provides transparent loan conditions, a credible repayment framework and evidence of the benefits derived from previous borrowings.
What Tinubu’s ₦10.79trn loan request covers
In his letter to the Senate, Tinubu sought approval to raise approximately $7.7 billion through a combination of external financing options to support the implementation of the 2026 Appropriation Act.
The President explained that the 2026 budget provided for ₦29.2 trillion in new borrowing to part-finance an estimated ₦31.4 trillion budget deficit.
The borrowing provision comprises ₦18.4 trillion in domestic financing and ₦10.79 trillion in external borrowing.
The proposed external financing is expected to support projects and programmes across defence and security, transportation, agriculture, power, education and healthcare.
Tinubu identified several possible funding channels, including Eurobond issuance, concessional and commercial loans from multilateral and bilateral institutions, facilities from the International Monetary Fund, loan syndications and other international financing arrangements.
He indicated that the government would give particular attention to Eurobonds because of their relatively faster processing time and potential to raise substantial funds.
The President also said the proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government, potentially contributing to the country’s external reserves.
Senate refers request for scrutiny
Following the presentation of the presidential communication during Wednesday’s plenary, Senate President Godswill Akpabio referred the request to the Senate Committee on Local and Foreign Debts for detailed consideration.
The committee was directed to examine the proposal and report back as soon as practicable.
The new request also supersedes an earlier proposal seeking approval for external borrowing of $20.52 billion and €1.045 billion under the 2026–2027 Supplementary External Borrowing Plan.
ALSO READ : Police Avert Clash as Peter Obi, Kwankwaso Supporters Face Tension with APC Crowd in Calabar
The change has placed additional attention on the government’s borrowing strategy and the need for lawmakers to establish the precise financing requirements of the 2026 budget.
Nigeria’s growing debt burden
Atiku’s intervention comes amid renewed public debate over Nigeria’s debt profile and the country’s capacity to meet its growing financial obligations.
Data from the Debt Management Office showed that Nigeria’s total public debt stood at ₦166.79 trillion as of June 30, 2026, compared with ₦87.38 trillion recorded in June 2023.
The increase has intensified concerns about debt servicing, government revenue and the proportion of public funds available for infrastructure, education, healthcare and social protection.
While the Federal Government maintains that borrowing is necessary to finance critical infrastructure and address budgetary shortfalls, critics argue that new loans must be accompanied by transparency, accountability and clear evidence of economic returns.
Atiku maintained that the National Assembly must exercise its constitutional oversight responsibilities rather than automatically endorse the executive’s borrowing proposals.
He also proposed a production-based petroleum subsidy as part of his alternative economic approach, arguing that government policy should prioritise production, social welfare and relief for struggling households.
“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 said.
