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From Ndubuisi Orji, Abuja
Former vice president, Atiku Abubakar, has knocked the approval of the refinancing of a $4.5 billion oil-backed loan belonging to the Nigerian National Petroleum Company Limited (NNPCL) by the National Economic Council (NEC).
Atiku, 2027 presidential candidate of the African Democratic Congress (ADC), alleged that the decision was further evidence that the administration of President Bola Tinubu was mortgaging Nigeria’s future to sustain what he described as “reckless fiscal habits.”
The NEC, chaired by Vice President Kashim Shettima, was reported to have approved the refinancing arrangement during its recent meeting.
Reacting in a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku said every additional oil-backed obligation increased Nigeria’s vulnerability by committing future crude oil earnings to present financial obligations.
He said the refinancing raised concerns about the sustainability of the country’s borrowing strategy. “Every new oil-backed obligation pushes Nigeria deeper into a vicious cycle where tomorrow’s wealth is sacrificed to finance today’s policy failures.”
Atiku recalled that the Presidency had recently responded to his claims regarding an unexplained N17 trillion crude oil windfall by stating that Nigeria could not fully benefit from rising international crude oil prices because future crude earnings had already been committed to oil-backed loans.
According to him, the explanation should have prompted a review of the country’s debt strategy rather than the approval of another refinancing arrangement.
“That explanation should have embarrassed any responsible government. Instead, this administration has chosen to double down on the very scandal it sought to justify by approving yet another $4.5 billion refinancing.
“Rather than breaking free from the chains of oil-backed indebtedness, it is tightening them,” he stated.
Atiku questioned why a country with significant oil resources, increased revenues and ongoing economic reforms would continue to rely heavily on borrowing.
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“What kind of government inherits a nation blessed with abundant oil resources, removes fuel subsidy, imposes multiple taxes, records crude oil windfalls, borrows aggressively at home and still finds it necessary to refinance billions of dollars secured against the country’s future oil production?” he asked.
He accused the administration of relying excessively on borrowing instead of using increased revenues to strengthen public finances and reduce debt obligations.
“This administration has turned Nigeria into a nation permanently living on credit. Instead of using increased revenues to reduce debt and build fiscal resilience, it continues to mortgage the future of generations yet unborn,” Atiku said.
The ADC presidential candidate called on the Federal Government to publish details of the refinancing arrangement, including the terms, repayment obligations and the volume of crude oil committed as security for the facility.
He said Nigerians deserved greater transparency and accountability in the management of the country’s resources.
“The tragedy is not merely the refinancing itself. The tragedy is that Nigerians have been subjected to untold hardship in the name of economic reforms, yet borrowing never stops. The pain is permanent, but the promised gains remain invisible,” he added.
Atiku further criticised the government’s economic policies, saying Nigerians had yet to feel the benefits of the reforms introduced by the administration.
“When reforms look like eating away the future to finance today’s consumption, no one can be in doubt that what we have is profligacy without moral restraint.”
He concluded by accusing the administration of replacing its promise of renewed hope with increased debt and uncertainty.
“President Tinubu promised renewed hope. What Nigerians have received is renewed debt, renewed hardship and renewed uncertainty. Under his watch, debt has become policy, borrowing has become governance and mortgaging the future has become the defining philosophy of his administration,” Atiku said.
