Former Vice President Atiku Abubakar has urged the Senate to reject President Bola Tinubu’s proposed $7.7bn external loan, warning that continued borrowing could worsen Nigeria’s debt burden and saddle future generations with mounting obligations.
Atiku’s position was contained in a statement issued on Wednesday, November 4, 2026, by Phrank Shaibu, Director of Strategic Communication of the African Democratic Congress (ADC) Presidential Campaign Council.
He described the administration’s borrowing frequency as alarming, arguing that foreign loans should not substitute for sound economic management amid persistent economic hardship.
Tinubu is seeking legislative approval to raise $7,707,404,882.49, equivalent to approximately ₦10.79tn, to part-finance the 2026 budget deficit.
The request, contained in a letter dated October 26, 2026, was read by Senate President Godswill Akpabio during Wednesday’s plenary and referred to the Senate Committee on Local and Foreign Debts for consideration.
The proposed facility is expected to finance projects in security, transportation, agriculture, power, education and healthcare.
It supersedes an earlier borrowing proposal of $20.52bn and €1.045bn submitted under the Federal Government’s external financing programme.
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Atiku urged senators to demand a breakdown of the projects, funding allocations, interest rates, repayment schedules and lending conditions before approving the facility.
He also questioned the provision allowing the final borrowing terms to depend on prevailing market conditions, insisting that lawmakers must understand the country’s financial exposure before committing to the loan.
The former vice president called on international lenders to suspend fresh financing to the administration until it demonstrates transparency in debt management and provides a credible repayment plan.
He also criticised the government’s economic policies, arguing that petrol subsidy removal and continued borrowing had failed to provide sufficient relief to Nigerians.
Atiku faulted what he described as inadequate infrastructure investment and weak social protection, advocating a production-based petroleum subsidy as an alternative approach to addressing economic hardship.
The controversy comes amid concerns over Nigeria’s public debt and rising debt-servicing costs.
The 2026 Appropriation Act provides for ₦29.2tn in new borrowing, comprising ₦18.4tn in domestic loans and approximately ₦10.79tn in external financing.
Although the Federal Government maintains that borrowing is necessary to bridge revenue gaps and fund development projects, concerns persist over repayment capacity, borrowing costs and accountability for the use of public funds.