A leading economic expert has issued a stark warning to President Bola Tinubu and state governors, cautioning that Nigeria is on the brink of financial collapse if the current borrowing spree continues unchecked.
Former Vice President Atiku Abubakar has strongly criticized the administration’s plan to secure over $24 billion in new external and domestic loans, arguing that the move threatens Nigeria’s economic stability and mortgages the country’s future. Atiku described the borrowing spree as “reckless and dangerous,” highlighting that it would raise Nigeria’s total public debt from ₦144.7 trillion to ₦183 trillion, a figure he says is unsustainable.
Economic analysts and business leaders have also voiced concerns over the government’s growing appetite for public borrowing, particularly given the widening gap between actual oil production levels and budgeted projections. The National President of the Nigerian Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Centre for Private Enterprises (CPPE) have warned that Nigeria’s debt-service-to-revenue ratio has already surpassed 130%, meaning the government now spends more on repaying loans than it earns.
Atiku further emphasized that the Tinubu administration is borrowing not for development but to service existing debt, turning Nigeria’s public finance into a Ponzi scheme. He urged lawmakers, civil society, and the international community to intervene and halt the borrowing plan before Nigeria is plunged into deeper economic turmoil.
Despite mounting concerns, the presidency has defended its borrowing strategy, arguing that the funds will be used to bridge fiscal deficits and support critical infrastructure projects. Presidential spokesperson Bayo Onanuga stated that the administration has undertaken bold economic reforms, including the removal of fuel subsidies and unification of the foreign exchange system, to stabilize the economy.