N12.62tn borrowing shows Tinubu has lost control of Nigeria’s finances — Atiku

Former Vice President Atiku Abubakar has accused President Bola Tinubu’s administration of losing control of Nigeria’s public finances following reports that the Federal Government exceeded its approved 2024 borrowing limit by N4.79 trillion.

Mr Abubakar, the presidential candidate of the African Democratic Congress, ADC, said the government’s fresh borrowing rose to N12.62 trillion, representing a significant breach of the limit approved by the National Assembly and raising fresh concerns over fiscal discipline, transparency and the country’s growing debt burden.

In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, the former vice president said the development contradicted the assurances that the removal of petrol subsidy, increased taxation and other economic reforms would reduce government borrowing and restore fiscal stability.

According to him, rather than easing the country’s debt burden, the policies had been followed by continued borrowing, rising debt obligations and what he described as wasteful public expenditure.

Mr Abubakar cited figures attributed to the Budget Office, which indicated that the Federal Government borrowed 61.2 per cent above the amount approved by the National Assembly.

He also raised concerns over an additional N3.19 trillion reportedly classified as “budget support,” despite the absence of a corresponding provision in the approved budget.

The former vice president questioned the source and utilisation of the funds, accusing the administration of operating without sufficient transparency and accountability.

“This is not an isolated incident. It fits into a disturbing pattern that has become the defining signature of the Tinubu administration: duplication, opacity and reckless fiscal management,” the statement said.

Mr Abubakar alleged that the borrowing figures were part of a wider pattern of financial mismanagement, citing reports of duplicated budgetary allocations, questionable government agencies, opaque expenditures under the Service Wide Vote and large allocations for official vehicles.

“This is the same government that has been caught creating fake agencies, padding budgets with duplicated allocations, hiding trillions under the mysterious Service Wide Vote, allocating obscene sums for luxury SUVs while critical sectors gasp for survival, and now borrowing far beyond the limits approved by law,” he said.

The ADC presidential candidate questioned the impact of the government’s borrowings on key sectors, including education, healthcare, security, infrastructure and electricity.

He argued that many Nigerians had yet to see improvements in public services that could justify the scale of the government’s borrowing.

“What exactly is all this borrowing funding?” he asked.

“Certainly not education, where children continue to learn under deplorable conditions.

“Certainly not healthcare, where hospitals remain underfunded.

“Certainly not security, where innocent Nigerians are massacred while security agencies complain of inadequate funding.

“Certainly not infrastructure, because the roads remain death traps and electricity has become an expensive luxury.”

Mr Abubakar said Nigerians were being compelled to bear the cost of servicing loans whose benefits, he argued, were not evident in the quality of public services or infrastructure across the country.

He also cited reports that high crude oil prices had generated an estimated N7.98 trillion oil revenue windfall for the Federal Government, arguing that increased revenue should have reduced the government’s dependence on borrowing.

According to him, the continued accumulation of debt despite higher revenues suggested a failure of fiscal discipline rather than a shortage of government income.

“A government earning windfalls while borrowing recklessly is not suffering from lack of revenue; it is suffering from lack of discipline,” he said.

The former vice president further cited figures indicating that debt servicing consumed N12.36 trillion, exceeding the budgeted amount by more than 52 per cent.

He warned that Nigeria could be approaching a situation in which a substantial portion of government revenue would be devoted to servicing existing debts, leaving limited resources for education, healthcare, infrastructure, security and other critical sectors.

“Nigeria is fast approaching the dangerous point where government exists primarily to borrow in order to repay previous borrowings,” he said.

“This is not economic reform. It is fiscal vandalism.”

Mr Abubakar said no responsible government should continue accumulating debt while failing to eliminate waste, improve transparency, block revenue leakages and reduce the cost of governance.

He argued that the administration’s fiscal policies had produced a troubling pattern in which government borrowing continued to rise despite increased revenues, higher taxes and the removal of petrol subsidy.

“When revenues increase, borrowing also increases. When taxes increase, borrowing still increases. When subsidy is removed, borrowing accelerates. When budgets are padded and duplicated, borrowing becomes the answer once again,” he said.

“This is not governance. It is a debt addiction.”

The former vice president said the ADC believed Nigeria required a government that would operate within its available resources, reduce waste, strengthen transparency and direct public funds towards productive investments.

He said public resources should be deployed to improve infrastructure, create jobs, strengthen public services and support sustainable economic growth rather than finance what he described as an endless cycle of borrowing.

“The Nigerian people cannot continue paying today’s taxes to service yesterday’s loans while tomorrow’s generations inherit only debt,” he said.