TDF Clarifies World Bank Loan Process, Responds to Atiku’s Concerns

The Democratic Front (TDF) has responded to concerns raised by former Vice President Atiku Abubakar over the Federal Government’s fresh loan request from the World Bank, saying the request is subject to established lending conditions, accountability requirements and due process.

In a statement signed by its Chairman, Mallam Danjuma Muhammad, and Secretary, Chief Wale Adedayo, the group said questions surrounding Nigeria’s borrowing should be considered within the context of the World Bank’s lending procedures and the country’s existing debt obligations.

TDF maintained that access to fresh financing from the World Bank is subject to the fulfilment of relevant legal, policy and reform conditions, as well as the assessment of a country’s capacity to utilise and service its existing obligations.

The group said the approval process therefore provides a framework for assessing accountability in the utilisation of previous loans and the country’s capacity to meet its debt-service commitments.

TDF also cited the repayment of Nigeria’s IMF COVID-19 loan in May 2025 as an indication of the Federal Government’s commitment to meeting its external debt obligations.

The group further noted that the National Assembly’s role in approving federal borrowing remains an important part of the constitutional process, adding that the Tinubu administration obtained legislative approval before proceeding with the fresh borrowing request.

On Nigeria’s overall debt profile, TDF acknowledged that the country’s public debt, reported at N166.79 trillion, remains a significant issue that requires careful management. However, it argued that debt levels should also be assessed alongside revenue performance, economic growth, foreign reserves and the country’s capacity to service its obligations.

According to the group, Nigeria’s reported debt-service-to-revenue ratio, GDP growth and foreign reserves indicate that the country still has fiscal capacity to invest in productive sectors that can stimulate economic growth and improve productivity.

TDF said it welcomed constructive scrutiny of government borrowing but urged public debate on the issue to remain focused on transparency, accountability, debt sustainability and the effective utilisation of borrowed funds.

The group also disagreed with Atiku’s assessment of the fresh loan request, describing the former Vice President’s concerns as a matter for public debate ahead of the forthcoming elections.

TDF urged Nigerians to carefully consider the competing positions on the country’s borrowing and economic management based on available facts and the broader national interest.