Former Vice President and presidential candidate of the African Democratic Congress (ADC), Atiku Abubakar, has criticised the Federal Government’s approval of a $4.5 billion refinancing facility for the Nigerian National Petroleum Company Limited (NNPCL), describing the move as a further burden on Nigeria’s future economic prospects.
In a statement issued on Wednesday by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku argued that the approval by the National Economic Council (NEC) to refinance the oil-backed loan demonstrates what he described as the Tinubu administration’s continued reliance on borrowing secured against the country’s future oil revenues.
According to the former vice president, every new oil-backed financial obligation pushes Nigeria deeper into debt and mortgages future national resources to address present fiscal challenges.
Atiku recalled that the Presidency recently responded to his allegation of an unexplained ₦17 trillion crude oil windfall, stating that Nigeria had been unable to fully benefit from higher global crude oil prices because future oil earnings had already been committed to servicing existing oil-backed foreign loans.
He said the government’s explanation should have prompted a review of its borrowing strategy rather than the approval of another refinancing arrangement.
“Rather than breaking free from the chains of oil-backed indebtedness, it is tightening them,” Atiku said.
Questioning the government’s fiscal approach, the former vice president asked why an administration that had removed fuel subsidies, introduced new taxes, recorded increased crude oil revenues and continued borrowing domestically still found it necessary to refinance billions of dollars secured against future oil production.
He accused the government of placing the country on what he described as a path of perpetual borrowing instead of using increased revenues to reduce debt and strengthen fiscal sustainability.
“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 the borrowing never stops. The pain is permanent, but the promised gains remain invisible,” he stated.
Atiku further alleged that borrowing had become a defining feature of the current administration, saying Nigerians had experienced increasing debt, economic hardship and uncertainty despite promises of economic recovery.
He called on the Federal Government to immediately publish the full details of the refinancing arrangement, including its terms, repayment obligations and the volume of crude oil committed under the facility.
According to him, Nigerians deserve full transparency and accountability regarding financial agreements that could have long-term implications for the country’s economy.
