TDF tackles Atiku over demand for account of previous loans
0
0
TDF tackles Atiku over demand for account of previous loans
By Alabidun Shuaib AbdulRahman
The Democratic Front, TDF has faulted former Vice President and African Democratic Congress presidential candidate, Atiku Abubakar, over his demand that the Federal Government account for previous borrowings before proceeding with a proposed $1.5bn World Bank financing.
Atiku had recently challenged the administration of President Bola Tinubu to explain how existing loans had been utilised before obtaining additional financing from the World Bank, amid Nigeria’s N166.79tn public debt as of June 30, 2026.
The proposed World Bank financing comprises three $500m facilities targeting climate resilience, social protection and early childhood development.
Reacting in a statement signed by its Chairman, Danjuma Muhammad, and Secretary, Wale Adedayo, the TDF said it was surprised by what it described as Atiku’s alleged lack of understanding of World Bank lending procedures.
READ ALSO: Kubwa, Bwari, others to witness 8-hour power outage on Wednesday — TCN
The group argued that the World Bank does not automatically approve fresh financing for member countries without satisfying its established legal, financial and project requirements.
According to the organisation, the World Bank’s Articles of Agreement require the institution to consider the purpose of a loan, the merits of the project, the borrower’s ability to meet its obligations and the proper utilisation of loan proceeds.
“The former Vice President clearly exhibited a lack of knowledge of World Bank loan processes and procedures, through his inexcusable ignorance of the fact that the World Bank does not automatically grant fresh loans to any country without compliance with legal and policy/reform conditions as contained in Article III of its Charter,” the statement said.
The TDF maintained that Nigeria’s ability to access additional World Bank financing indicated that the country had met the relevant conditions required by the institution.
It said, “We are, however, aware that Nigeria can only access a fresh loan from the global institution after providing evidence of strict application of previous loans to the intended developmental projects or ventures. A positive record of repayment and debt servicing trajectory is also part of the metrics used for World Bank approvals.”
The group added that approval of new financing should not be interpreted as an absence of scrutiny, arguing that the World Bank’s lending framework includes safeguards concerning the use of funds and a borrower’s capacity to meet its obligations.
The World Bank’s Articles of Agreement state that the institution must pay due regard to a borrower’s prospects of meeting its obligations, while loan proceeds are to be used only for the purposes for which they were granted.
TDF also criticised Atiku for questioning the Federal Government’s borrowing plans, recalling that the former Vice President served under an administration that, according to the group, obtained and expended more than $3.1bn in foreign loans.
It further cited Nigeria’s repayment of a $3.4bn emergency financing facility obtained from the International Monetary Fund during the COVID-19 pandemic as evidence of the country’s debt-servicing capacity.
The IMF approved the $3.4bn facility for Nigeria in April 2020 under its Rapid Financing Instrument.
The organisation said the more important issue was whether the Tinubu administration obtained the necessary legislative approval before seeking additional borrowing.
TDF claimed that the President secured the National Assembly’s approval before requesting the fresh World Bank financing, describing this as evidence that due process had been followed.
The group also dismissed Atiku’s repeated concerns about Nigeria’s public debt, saying the country’s debt position remained manageable.
It noted that although the N166.79tn public debt figure was substantial, Nigeria’s debt burden should be assessed alongside other fiscal and economic indicators.
TDF cited a 55 per cent debt-service-to-revenue ratio, 4.43 per cent year-on-year GDP growth and foreign reserves of $55.25bn, which it said provided fiscal space for investment in productive sectors.
The group said Nigeria’s debt profile was lower than those of some other major African economies, including South Africa and Egypt, which it claimed had debt profiles exceeding $300bn.
It therefore condemned Atiku’s opposition to the proposed World Bank financing, describing his position as politically motivated.
“We consider it not only a jaundiced opinion but also a continuation of his mischievous tirade to mislead the public to gain an electoral advantage in the forthcoming elections,” the group said.
Meanwhile, the Debt Management Office confirmed that Nigeria’s total public debt stood at N166.79tn as of June 30, 2026.
