…Opposition Demands Full Disclosure Of Previous Borrowings, Subsidy Savings
…Party Urges National Assembly To Reject Proposal Without Clear Repayment Plan
Daud Olatunji
President Bola Tinubu has asked the National Assembly to approve fresh external loans of $20.52bn and €1.04bn to finance projects and programmes across various sectors, triggering criticism from the African Democratic Congress, which accused the administration of mortgaging Nigeria’s future.
The ADC Presidential Campaign Council described the proposed borrowing as reckless, warning that continued dependence on foreign loans without transparent accounting of previous facilities could deepen the country’s debt burden and constrain future governments.
The request, conveyed in a letter read by Senate President Godswill Akpabio during plenary on Tuesday, October 27, comes amid mounting public concerns over the cost of living, government borrowing and the impact of economic reforms introduced by the Tinubu administration.
The proposed facilities, comprising $20.52bn and €1.04bn, are intended to finance projects and programmes across several sectors. However, the specific breakdown of the projects, loan terms and repayment arrangements was not provided in the material available to PLATFORM TIMES.
The fresh borrowing proposal has also renewed scrutiny of the administration’s fiscal strategy, particularly following earlier borrowing approvals and the government’s removal of the petrol subsidy.
In a statement signed by its Director of Media and Publicity, Kola Ologbondiyan, the ADC questioned the justification for the additional loans, demanding explanations on the utilisation of previous borrowings and the revenue generated from subsidy removal.
“What exactly is President Tinubu borrowing all this money for? Where are the roads, the electricity, the hospitals, the jobs and the critical infrastructure that should justify this relentless accumulation of debt? Nigerians deserve answers,” Ologbondiyan said.
The party also questioned why the Federal Government was seeking additional foreign financing while many Nigerians continued to struggle with rising living costs and other economic pressures.
“Where is the money saved from fuel subsidy removal? What happened to the previous loans? And why must the government return to the international credit market with another $20 billion and £1 billion when millions of Nigerians are struggling to survive?” the ADC spokesperson asked.
The ADC argued that the government must demonstrate how previous loans and funds saved from subsidy removal had translated into tangible improvements in infrastructure, employment, electricity supply, healthcare and citizens’ welfare.
It warned that a development strategy driven largely by borrowing and increased taxation, without corresponding improvements in productivity and living standards, could expose Nigeria to unsustainable debt obligations.
“This is not a sustainable path to national development. It is a dangerous attempt to mortgage the future of Nigeria and generations yet unborn,” Ologbondiyan stated.
According to the party, continued dependence on foreign creditors could increase debt-servicing obligations, reduce the resources available for essential public services and restrict the policy options available to future administrations.
The opposition party further warned that excessive borrowing could undermine Nigeria’s economic independence if the government failed to demonstrate that the loans would generate sufficient economic returns to justify their cost.
“President Tinubu cannot continue to impose painful economic sacrifices on Nigerians, claim the benefits of subsidy removal and, at the same time, seek enormous additional loans without adequately explaining how the resources already available to his government have been spent,” Ologbondiyan said.
The ADC called on the National Assembly to subject the proposed facilities to rigorous scrutiny and reject them unless the Federal Government provides convincing evidence of their necessity, affordability and likely benefits to Nigerians.
It urged lawmakers to demand a comprehensive account of all domestic and foreign loans obtained by the Tinubu administration since it assumed office on May 29, 2023.
