The African Democratic Congress, ADC has criticised the Bola Ahmed Tinubu administration of fiscal irresponsibility in view of the recent approval of the $21 billion foreign loan by the Nigerian Senate.
Two weeks ago, the senators approved, for the Tinubu administration, the-go-ahead to obtain the foreign loan following request by the Presidency.
But the ADC said the administration will surpass previous administrations in debt , saying it has also failed to explain how the loans will be used adding that the administration would have taken the country’s total public debt to over N200 billion by the end of 2025.
The ADC raised the concern in a a statement issued by Bolaji Abdullahi its Interim National Publicity Secretary, on Sunday, criticising the National Assembly for failure to truly scrutinise the loan request by the president before approval.
The Tinubu administration has however denied suggestions that it has accumulated more local and foreign debt than its predecessors in office amidst serious public criticism.
The opposition party said accumulating more debt has the potential to endanger the country’s future, describing the action as “a troubling pattern that risks mortgaging the country’s future to address current fiscal pressures.”
ADC: “Under former President Buhari, Nigeria borrowed an average of ₦4.7 trillion per year, which itself raised public concern. However, under President Tinubu, borrowing has reportedly surged to ₦49.8 trillion per year. In just two years, the current administration has exceeded the borrowing levels recorded under Buhari in the same period.
“At this rate, Nigeria’s public debt could surpass ₦200 trillion before the year ends. We are headed towards a fiscal cliff, and it appears that those in charge believe that debt accumulation is a sustainable solution to structural economic problems.
“Supporters of the government argue that Tinubu’s borrowings are smaller in dollar terms — about $1.7 billion annually — compared to Buhari’s $4.15 billion. But this comparison becomes misleading when viewed through the lens of the current exchange rate.
“With the naira depreciating significantly, partly due to recent monetary policy decisions, the naira-equivalent cost of foreign loans has soared. Tinubu’s annual foreign borrowing, when converted at current exchange rates, amounts to approximately ₦25.5 trillion — far more than Buhari’s ₦2.2 trillion annual average.
“This suggests that Nigeria may be entering a deeper debt trap, worsened by economic mismanagement and currency instability.
“Since the APC took over in 2015, the nation’s total debt stock has grown from ₦12.6 trillion to an estimated ₦149 trillion in 2025. In the past decade, Nigeria has reportedly borrowed over $35 billion from external lenders. Debt owed to the World Bank has tripled, and liabilities from Eurobonds have increased more than tenfold.
“Now, with the latest loan approval, foreign debt may rise to $67 billion. This persistent borrowing — without a clear repayment strategy or demonstrable development impact — places an undue burden on future generations.
“Despite this debt expansion, infrastructure remains underdeveloped, universities underfunded, hospitals under-equipped, and power supply unreliable. Nigerians are therefore left to wonder: What exactly are these loans being used for?
“Rather than providing oversight, the National Assembly continues to approve these loans without demanding detailed justifications, implementation plans, or accountability measures.
“According to the Association of Small Business Owners of Nigeria, the debt burden is already affecting small enterprises. Access to credit has diminished, investor confidence is waning, and with over 60% of government revenue going toward debt servicing, the financial pressure is increasingly being transferred to everyday Nigerians through heavier taxation.
“While other countries are implementing strategies to reduce their debt loads, the current administration appears to be doing the opposite. The recent devaluation of the naira, which should have encouraged fiscal prudence, is instead being used as a pretext for more borrowing.
“The ADC therefore demands full disclosure of all loan agreements signed in the past decade, including those under the current administration. Nigerians deserve to know the terms, interest rates, repayment periods, and intended uses of these loans.
“We also urge President Tinubu to halt this borrowing spree and prioritize sustainable economic reforms, prudent investment, and responsible spending. The era of borrowing to compensate for policy missteps must come to an end.”
Analysts have expressed fears that the administration’s appetite for obtaining foreign loan, with no intention to stop, despite public opposition will put the country’s future and economy in jeopardy.
Discover more from The Source
Subscribe to get the latest posts sent to your email.
