What Is Your Problem? Atiku Fires Tinubu On New Request For $7bn(N10trn) Loan
“What is the problem with this government? Why is President Tinubu making borrowing requests on behalf of Nigeria week in, week out?” former Vice President Atiku Abubakar has said after President Bola Ahmed Tinubu placed a request for another $7.7 billion foreign loan.
Questioning the purpose of the fresh borrowing, Atiku asked: “What is Tinubu using his loans to finance specifically?”
Atiku said the latest request, equivalent to about N10.79 trillion, was coming barely days after the Federal Government presented separate borrowing proposals of $20.52 billion and €1.045 billion to the National Assembly, raising questions about the administration’s appetite for foreign loans amid worsening economic hardship.
President Bola Tinubu had asked the Senate to approve the implementation of a $7.7bn external borrowing plan to part-finance the 2026 budget deficit.
The request, which translates to about N10.79tn at the budget exchange rate of N1,400 to the dollar, was conveyed in a letter read by the President of the Senate, Godswill Akpabio, during Wednesday’s plenary.
In the letter dated October 26, 2026, Tinubu requested the National Assembly’s approval for the Federal Government to implement new external borrowings provided for in the 2026 Appropriation Act.
However, Atiku warned Tinubu against committing Nigerians and future administrations to mounting debt without full disclosure of how the money will be spent, according to a statement by Phrank Shaibu, Director of Strategic Communication, ADC Presidential Campaign Council, on Wednesday.
Atiku questioned the frequency of the borrowing requests and demanded that the Senate subject the latest proposal to rigorous scrutiny.
He argued that Nigerians were being saddled with fresh debt obligations without sufficient explanation of the benefits of previous borrowings, while households and businesses continued to grapple with rising costs.
“Every new foreign loan is a bill Nigerians will eventually have to pay. This government cannot keep presenting borrowing as a substitute for sound economic management while families and businesses carry the cost of its failures,” he said
Atiku specifically demanded disclosure of the projects to be funded, their individual costs, interest rates, repayment schedules and other conditions, noting that the President’s letter indicated that final loan terms would depend on market conditions when the borrowing was priced.
“No government should receive a blank cheque to contract foreign debt in the name of budget implementation,” he warned.
He also cautioned that Tinubu’s administration must not saddle Nigerians and succeeding governments with fresh financial obligations without demonstrating how previous loans had benefited the country
Atiku called on international agencies and lenders to suspend fresh lending to the administration until it provides transparent borrowing terms, a credible repayment plan and clear evidence of the impact of previous loans.
Turning to the administration’s economic record, the former Vice President questioned why the removal of petroleum subsidy had not translated into improved living conditions, despite the scale of government borrowing.
“Tinubu removed subsidy on petroleum products but has emerged as the highest borrowing government in Nigeria’s record history,” he said
He further accused the administration of presiding over worsening living conditions, inadequate infrastructure and the absence of effective social welfare interventions.
“Nigerians are hungry and angry. Public infrastructure are limited; social welfare intervention is non-existent. Yet Nigeria is owing massively under Tinubu,” he said
He said his alternative economic approach would include a production-based subsidy on petroleum products, which he described as a way of restoring social welfare and supporting productive economic activities.
Atiku urged the Senate to remember its accountability to Nigerians, insisting that lawmakers must obtain satisfactory answers on the proposed borrowing before approving another multitrillion-naira debt obligation.
The President said the borrowing was part of the N29.2tn approved new borrowing for the 2026 budget, comprising N18.4tn in domestic borrowing and N10.79tn in external borrowing.
He said the external financing was required to part-finance the budget deficit and support the implementation of projects and programmes captured in the 2026 Appropriation Act.
Tinubu said, “I write to request for a resolution of the National Assembly to implement the new external borrowings in the 2026 Appropriation Act in the sum of N10, 790, 366, 835,481, which is the equivalent of $7,707,404,882.49 at the budget exchange rate of USD 1 to 1,400 Naira for the part financing of the budget deficit of 20.23 trillion Naira.”
According to the letter, the government plans to explore different funding options simultaneously, with emphasis on issuing Eurobonds because of the relatively shorter time required to raise funds and the possibility of securing larger amounts at lower costs.
Tinubu said, “The terms and conditions of the Eurobond issuance, being market-related, the final terms and conditions, interest rates and tenors can only be determined at the time of pricing and will be subject to market conditions prevailing at the time.”
He added that the Federal Ministry of Finance and the Debt Management Office would ensure that Nigeria secured the best possible terms and conditions.
Explaining the intended use of the funds, the President said the borrowing would support projects in priority sectors, including defence and security, transportation, agriculture, power, education and health.
He also said the proceeds would help strengthen the country’s external reserves and support the naira.
“The proceeds will increase accretion to external reserves since they will be received by the Central Bank of Nigeria on behalf of the Federal Government of Nigeria, thereby supporting the Naira exchange rate,” he said.
After reading the letter, Akpabio said he believed the latest request cancelled the $20.52bn and €1.045bn external borrowing proposal earlier presented to the National Assembly.
The Senate President referred the latest request to the Committee on Local and Foreign Debts for further legislative action.
Tinubu had last week asked the Senate and the House of Representatives to approve external borrowing facilities totalling $20.52bn and €1.045bn under the Federal Government’s 2026–2027 Supplementary External Borrowing Rolling Plan.
