BY TAIBAT UMMI YAKUBU

Former Vice-President Atiku Abubakar has strongly criticised President Bola Tinubu's latest request for a $7.707 billion (₦10.79 trillion) foreign loan, accusing his administration of increasingly relying on borrowing to finance government activities while Nigerians struggle with worsening economic hardship.

Atiku's reaction came shortly after Tinubu submitted a revised external borrowing proposal to the Senate, seeking approval to raise $7.707 billion to support the implementation of the 2026 budget.

The new request replaces an earlier proposal seeking approval for $20.52 billion and €1.045 billion in external loans, which had already been presented to the National Assembly.

Senate President Godswill Akpabio disclosed the development during Wednesday's plenary while reading a fresh letter from the President. He explained that the revised proposal effectively superseded the previous borrowing request.

In the October 26 letter, Tinubu asked lawmakers to approve external financing equivalent to ₦10.79 trillion, calculated at the 2026 budget exchange rate of ₦1,400 to the dollar.

The President explained that the proposed foreign loan formed part of the ₦29.2 trillion borrowing requirement in the 2026 budget, which was designed to finance an estimated ₦31.4 trillion deficit.

Under the proposed financing arrangement, the Federal Government intends to raise ₦10.79 trillion from external sources, while obtaining another ₦18.4 trillion from the domestic debt market.

Tinubu said the foreign financing would be sourced through Eurobond issuance, concessional and commercial loans from multilateral and bilateral institutions, International Monetary Fund facilities and bridge financing arrangements.

However, he indicated that the government would prioritise Eurobond issuance because of its relatively faster processing and potential to generate substantial funds at comparatively lower costs.

According to the President, the Federal Ministry of Finance and the Debt Management Office would work together to secure favourable borrowing conditions, with the final terms determined by prevailing market conditions.

Tinubu said the funds would be channelled into projects and programmes captured in the 2026 Appropriation Act, particularly in defence and security, transportation, agriculture, power, education and healthcare.

He also argued that the proposed borrowing would support the administration's economic reform agenda, strengthen the country's external reserves and provide additional support for exchange-rate stability.

The President explained that the foreign currency proceeds would be received by the Central Bank of Nigeria on behalf of the Federal Government, contributing to the country's external reserves.

But Atiku questioned the frequency of the administration's borrowing requests, arguing that Nigerians should not be expected to accept repeated foreign loans without adequate explanations about their purpose, cost and repayment arrangements.

In a statement issued by his Director of Strategic Communications, Phrank Shaibu, the ADC presidential candidate described the latest request as another troubling development in the country's growing debt profile.

"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," Atiku said.

He questioned why the government was seeking another multibillion-dollar loan barely days after submitting the earlier $20.52 billion and €1.045 billion borrowing proposal.

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The former vice-president also demanded details of the specific projects expected to benefit from the proposed funds, the amount allocated to each project, the interest rates and the repayment schedule.

He argued that Tinubu's letter did not provide sufficient clarity on the final conditions of the proposed facilities, particularly as the government intended to determine the terms based on prevailing market conditions when the loans were priced.

Atiku therefore urged the Senate to subject the proposal to thorough scrutiny rather than approve it without demanding detailed explanations from the executive.

He insisted that lawmakers must obtain a comprehensive list of projects, clear funding allocations, proposed loan conditions and a credible repayment plan before considering the request.

The former presidential candidate warned that the National Assembly must not give the government unrestricted authority to accumulate foreign debt in the name of implementing the national budget.

He also raised concerns about the long-term implications of the borrowing, arguing that Tinubu should not leave future administrations and generations of Nigerians with additional financial obligations without full disclosure and accountability.

Atiku further called on international financial institutions and lenders to reconsider extending fresh loans to the administration until it provides transparent borrowing conditions, a realistic repayment strategy and evidence of the benefits Nigerians have received from previous loans.

Taking his criticism further, he accused the Tinubu administration of failing to deliver economic relief despite the removal of the petroleum subsidy and its growing reliance on foreign borrowing.

He argued that Nigerians were experiencing severe cost-of-living pressures, with households struggling to afford basic necessities and businesses facing increasing difficulties.

Atiku also questioned the government's infrastructure spending, social welfare interventions and the actual impact of its borrowing activities on ordinary citizens.

He said the country could not continue accumulating debts without visible improvements in public infrastructure and the living conditions of its people.

As an alternative, the former vice-president proposed a production-based subsidy arrangement for petroleum products, which he said would help restore social welfare support and provide relief to Nigerians.

He maintained that Nigeria could not borrow its way out of every budget deficit, insisting that the government must explore more sustainable economic policies.

Meanwhile, Akpabio referred Tinubu's revised borrowing request to the Senate Committee on Local and Foreign Debts for detailed examination, directing the committee to report back as soon as practicable.

The development comes amid growing concerns about Nigeria's public debt, rising debt-servicing obligations and the government's continued dependence on borrowing to meet budgetary commitments.

The Senate's eventual decision will determine whether the Federal Government receives approval to proceed with the proposed ₦10.79 trillion external financing.