Atiku Slams Tinubu Over Fresh $1.25bn World Bank Loan, Warns of Reckless Debt Trap.

Former Vice President Atiku Abubakar has sharply criticised President Bola Tinubu’s administration for negotiating a new $1.25 billion loan from the World Bank, describing it as another sign of unsustainable borrowing amid widespread economic hardship in Nigeria.

In a statement issued on Sunday by his media aide, Olusola Sanni, Atiku accused the current government of developing a “reckless” and “habitual” dependence on loans despite rising inflation, food insecurity, energy costs, and declining living standards for millions of Nigerians.

“Atiku questioned how the administration could continue heavy borrowing even as it claims that reforms such as fuel subsidy removal, forex liberalisation, and improved tax collection have boosted government revenue.

“The loans are coming with a burden too heavy for Nigerians to bear. Nigerians were told these loans were for infrastructure, power, and economic recovery. Yet the average citizen still lives in darkness, roads remain death traps, businesses are collapsing, and hunger has become a national epidemic,” he said.

The former presidential candidate noted that Nigeria, classified among the world’s poorest countries alongside Bangladesh and Pakistan, remains one of the highest recipients of concessional IDA loans from the World Bank a situation he said contradicts the government’s revenue generation narrative.

Atiku warned that the country risks sliding back into a debt crisis similar to the one resolved under the Obasanjo-Atiku administration through the Paris Club debt relief in 2005-2006.

He described the current approach as “economic vandalism,” arguing that borrowing is being mistaken for governance, while mortgaging the future of unborn Nigerians.

The PDP chieftain called on the World Bank and other international lenders to enforce stricter transparency, accountability, and measurable outcomes before approving further loans to Nigeria. He also urged the Federal Government to publish a full account of all loans secured since May 2023, including terms, disbursement status, and linked projects.

Since assuming office, the Tinubu administration has secured multiple World Bank facilities for power sector reforms, social protection, agriculture, healthcare, and budget support.

The government maintains that these concessional loans are necessary to stabilise the economy inherited with deep structural challenges.

However, critics continue to raise concerns over rising public debt, naira devaluation effects, and the lack of visible improvements in citizens’ living conditions.

The Presidency and Ministry of Finance had not responded to Atiku’s statement as of the time of this report.