Fiscal vandalism: Atiku raises alarm over Nigeria’s N12.62tr debt profile

Former Vice President Atiku Abubakar has expressed concern regarding Nigeria's debt situation, characterizing the revelation that the Federal Government has surpassed its 2024 borrowing limit by N4.79 trillion, resulting in total borrowing of N12.62 trillion, as fiscal mismanagement and evidence that the administration of President Bola Tinubu has entirely lost control over the nation's financial affairs.

In a statement released on Wednesday by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku remarked that Nigerians were assured that the elimination of the fuel subsidy, repeated tax increases, and other stringent economic measures would lead to a reduction in borrowing and the restoration of fiscal stability. However, the nation is instead experiencing "continuous borrowing, escalating debt, and unprecedented waste."

As stated by the presidential candidate of the African Democratic Congress (ADC), the Budget Office revealed that the Federal Government's borrowing exceeded the amount approved by the National Assembly by 61.2 percent.

He pointed out that an additional N3.19 trillion, categorized as "budget support," was acquired despite the absence of such a provision in the approved budget, with no clear indication of its origin.

Atiku emphasized that this situation is not an isolated occurrence but rather part of a troubling trend that has become characteristic of the Tinubu administration. He highlighted issues such as the establishment of fictitious agencies, inflated budgets with duplicated allocations, funds concealed under the Service Wide Vote, and excessive allocations for luxury SUVs while essential sectors struggle to survive.

He raised concerns about the purpose of the borrowing, asserting that it is certainly not for education, where children continue to study in inadequate conditions, nor for healthcare, where hospitals remain underfunded, nor for security, where innocent Nigerians are killed while security forces report insufficient funding, nor for infrastructure, as roads remain perilous and electricity has become a costly luxury.

The former Vice President highlighted what he referred to as a concerning contradiction, pointing out that elevated crude oil prices had provided the Federal Government with an estimated N7.98 trillion oil windfall in recent days. However, rather than decreasing borrowing, the government continued to accumulate debt.

He referenced a report from the Budget Office indicating that debt servicing alone consumed N12.36 trillion, surpassing the budget by over 52 percent. He cautioned that Nigeria is rapidly nearing a situation where the government primarily exists to borrow funds to repay previous debts.

Atiku asserted that no accountable government should jeopardize the future of unborn generations while simultaneously overseeing duplicated budgets, extravagant expenditures, unclear financial practices, and a continually growing bureaucracy, questioning: "Where is all the money going?"

He noted that each time revenues rise, borrowing also escalates; each time taxes increase, borrowing continues to rise; each time subsidies are eliminated, borrowing accelerates; and each time budgets are inflated and duplicated, borrowing remains the solution. "This is not governance. It is a debt addiction," he stated.

The ADC candidate expressed that Nigeria deserves a government that operates within its financial means, eliminates waste, restores transparency, prevents financial leakages, and directs public resources towards productive investments instead of perpetuating a cycle of borrowing.

"The Nigerian populace cannot keep paying today’s taxes to service yesterday’s debts while future generations are left with nothing but debt," he remarked.