$21.7bn loan: Atiku’s aide challenges Tinubu to disclose repayment schedule

Opposition Challenges President Tinubu’s $21.7 Billion Borrowing Plan

Paul Ibe, media aide to Atiku Abubakar, the presidential candidate for the African Democratic Congress, has raised concerns regarding President Bola Tinubu’s proposed $21.7 billion external borrowing plan. Ibe is demanding transparency about the details of the proposed projects and the repayment structure for the loans.

In a post on X, Ibe criticized Finance Minister Taiwo Oyedele’s characterization of the plan as an investment rather than borrowing. He contends that regardless of the terminology used, the funds will ultimately need to be repaid with interest.

Ibe requested a comprehensive breakdown of 46 proposed projects spanning 11 sectors, which should include details on costs, locations, implementing agencies, procurement records, and completion timelines. He also questioned the financing terms, noting that the World Bank component is estimated to carry an average interest rate of approximately 2.1 percent, while the commercial component may have an indicative average rate of 7.8 percent.

Further, Ibe urged the government to disclose the complete repayment schedule and address how Nigeria plans to manage loan servicing in the event of a decline in oil earnings, a depreciation of the naira, or delays in project execution.

He additionally called for feasibility studies and independently assessed costs for key infrastructure projects, such as the Lagos-Calabar and Sokoto-Badagry highways, as well as the Kano-Kaduna rail project. Ibe emphasized the need for the government to clarify whether any of the proposed projects already have budget allocations or approved financing, and to specify which states and agencies would be responsible for the funds and loan repayment.

Ibe urged the National Assembly to obtain the necessary documents and ensure public scrutiny of the plan prior to its approval. He stated, “Nigerians understand the need for infrastructure. They also understand that an inflated contract, an abandoned project, or an unrealistic revenue forecast can leave them paying for promises that never materialize. Calling debt an investment does not answer who will pay, how much, or for how long.”

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