The African Democratic Congress (ADC) has condemned the approval of an additional 21 billion dollars in foreign loans by the National Assembly, accusing the Tinubu administration of what it called “fiscal vandalism.” The opposition party warned that the continued accumulation of debt will push Nigeria’s total public debt above 200 trillion naira before the end of the year, without tangible signs of national development or economic recovery.
In a statement released by its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC criticized President Bola Tinubu for allegedly outpacing his predecessor in plunging the country into unsustainable debt under the guise of economic reforms.
“The African Democratic Congress (ADC) is deeply concerned by the Tinubu administration’s dangerous obsession with borrowing. What Nigerians are witnessing, following the approval of a fresh 21 billion dollars in foreign loans, is nothing short of a calculated decision to mortgage the country’s future just to cover up the failures of today,” the statement read.
“Under President Buhari, Nigeria borrowed an average of N4.7 trillion per year, and even that caused widespread concern. But under President Tinubu, borrowing has jumped to N49.8 trillion per year. In just two years, this administration has borrowed more than ten times what Buhari borrowed in the same timeframe. At this rate, Nigeria’s total public debt will crash through N200 trillion before the end of the year. We are speeding toward a financial cliff, and those in charge seem to have no brakes, thinking they can borrow their way out of economic problems that require more thoughtful actions and greater fiscal discipline.”
The ADC argued that claims of reduced foreign borrowing in dollar terms under Tinubu’s government are misleading due to the sharp depreciation of the naira.
“Supporters of this government like to argue that Tinubu’s borrowing is smaller in dollar terms, just 1.7 billion dollars annually, compared to Buhari’s 4.15 billion dollars. But that argument collapses the moment we look at the exchange rate. With the naira now in free fall, again thanks to this administration’s poor police choices, these same loans are costing the country far more. When converted to naira, Tinubu’s foreign borrowing amounts to N25.5 trillion every year, more than Buhari’s annual average of N2.2 trillion. What we are witnessing is the deepening of a debt trap created by economic mismanagement and a collapsed currency.”
According to the ADC, Nigeria’s debt has ballooned from 12.6 trillion naira in 2015 to over 149 trillion naira today, with over 35 billion dollars borrowed from external lenders in the last decade alone.
“Over 35 billion dollars has been borrowed from external lenders alone in the last decade of the APC. This is nearly twelve times more in just ten years. Our debt to the World Bank has tripled. What we owe in Eurobonds has grown eleven times over. And now, this government wants to borrow even more, pushing our foreign debt ceiling to 67 billion dollars.”
The party decried what it sees as a lack of accountability and visible results from the loans.
“This reckless borrowing, repeated year after year, with no plan to repay it, and no effort to use it productively, will leave our children repaying debts that they did not incur or benefit from. The debts have continued to mount, but infrastructures have remained poor, universities are still grossly underfunded, hospitals are still ill equipped and electricity supply are as poor as ever. So, what exactly are these loans used for? This is the question that Nigerians expect the National Assembly to ask. Instead, it has continued to approve these loans without asking the hard questions, without demanding a plan, and without standing up for the Nigerian people.”
Citing a report from the Association of Small Business Owners of Nigeria, the ADC noted the impact of government borrowing on the private sector.
“According to the Association of Small Business Owners of Nigeria, the cost of Tinubu’s borrowing is already crushing the very backbone of our economy. Small businesses can no longer access credit. Investors are losing confidence and pulling out. And because over 60 percent of our national income is now used to service debt, the government is turning to ordinary Nigerian families and taxing them beyond their limits.”
The ADC said the recent devaluation of the naira should have eased the pressure to borrow, but instead, it is being used to justify further debt accumulation.
“While other countries are fighting to reduce their debts, the APC is taking out more loans. The recent devaluation of the naira should have reduced the need for external borrowing, but instead, the government has treated it as an excuse to borrow even more.”
The party called for full transparency in all loan agreements entered into by the federal government over the past ten years.
“ADC demanded a full disclosure of all loan agreements signed over the past ten years, insisting that Nigerians have a right to know the terms, interest rates, payment timelines, and final recipients of the loans.”
