Atiku Slams Nigeria's N12.62 Trillion Debt, Accuses Govt of Fiscal Vandalism

• Atiku Abubakar, a former presidential candidate, has criticized the country's N12.62 trillion debt profile.
• An additional N3.19 trillion was borrowed under 'budget support' without clear disclosure of its source or parliamentary approval.
• The Nigerian government's actions have raised concerns about potential breaches of fiscal regulations and debt management laws.
• Investors, businesses, and citizens must be aware of the risks associated with Nigeria's debt management practices.

Notably, an additional N3.19 trillion was borrowed under the guise of 'budget support', despite no such provision being included in the approved budget.

Nigeria's former presidential candidate, Atiku Abubakar, has sounded the alarm over the country's escalating debt profile, which now stands at a staggering N12.62 trillion. This figure is comprised of both domestic and foreign debts, with the latter accounting for approximately 30% of the total amount. Notably, an additional N3.19 trillion was borrowed under the guise of 'budget support', despite no such provision being included in the approved budget. Furthermore, there has been a lack of transparency regarding the source of these funds.

The Nigerian government's actions have raised concerns among legal experts about potential breaches of fiscal regulations and debt management laws. The country's constitution and relevant statutes are clear on the need for transparent budgeting and accounting practices, as well as the requirement for parliamentary approval before incurring significant debts. However, it appears that these safeguards have been circumvented in this instance, with the government seemingly engaging in 'fiscal vandalism' by accumulating debt without proper oversight or accountability.

The implications of Nigeria's rising debt profile are far-reaching and have significant consequences for investors, businesses, and citizens alike. Lawyers advising clients on investments or business operations in Nigeria must be aware of the potential risks associated with the country's debt management practices. Scrutiny is required to ensure that government guarantees or budget support loans are transparent and compliant with regulations. Failure to do so could lead to financial losses and reputational damage for those involved.

Lawyers advising clients on investments or business operations in Nigeria should be aware of the potential implications of the country's rising debt profile and scrutinize any government guarantees or budget support loans for transparency and compliance with regulations.

Source: Original reporting via Vanguard News