Tinubu’s $21bn Loan Pushing Nigeria Into Debt Trap – ADC

Tinubu’s $21bn Loan Pushing Nigeria Into Debt Trap – ADC

The African Democratic Congress (ADC) has strongly criticized President Bola Tinubu’s administration over what it termed “fiscal vandalism,” following the National Assembly’s approval of an additional $21 billion in foreign loans.

The party warned that the continued borrowing spree could push Nigeria’s public debt beyond ₦200 trillion by the end of 2025, with little to no tangible economic progress to justify it.

In a statement by its National Publicity Secretary, Mallam Bolaji Abdullahi, the ADC accused President Tinubu of hastening Nigeria’s slide into an even deeper debt crisis than what was experienced under the previous administration.

“With the approval of this fresh $21 billion loan, Nigerians are witnessing a deliberate move to mortgage the country’s future in a bid to conceal the shortcomings of the present,” the statement read.

Citing official data, the ADC argued that under former President Muhammadu Buhari, the country borrowed an average of N4.7trn annually.

However, borrowing under the Tinubu administration has skyrocketed to N49.8trn per year.

“In just two years, this administration has borrowed more than 10 times what Buhari borrowed in the same timeframe,” the statement said.

“At this rate, Nigeria’s total public debt will crash through N200trn before the end of the year.

We are speeding toward a financial cliff, and those in charge seem to have no brakes,” it added.

While defenders of the Tinubu government have claimed the current borrowing figures appear smaller in dollar terms, $1.7bn annually compared to Buhari’s $4.15 billion, the ADC dismissed such arguments, pointing instead to the devastating impact of currency devaluation.

“With the naira now in free fall, again thanks to this administration’s poor policy choices, these same loans are costing the country far more,” the statement read.

“When converted to naira, Tinubu’s foreign borrowing amounts to N25.5trn every year, more than Buhari’s annual average of N2.2trn,” the ADC stated.

The opposition party claimed that since the APC assumed power in 2015, Nigeria’s public debt has ballooned from N12.6trn to over N149trn in 2025, with over $35bn borrowed from external lenders alone in the last decade.

“Our debt to the World Bank has tripled. What we owe in Eurobonds has grown 11 times over. And now, this government wants to borrow even more, pushing our foreign debt ceiling to $67bn,” the statement noted.

The ADC expressed concern that this growing mountain of debt had not translated into improved infrastructure or services.

“The debts have continued to mount, but infrastructures have remained poor, universities are still grossly underfunded, hospitals are still ill-equipped, and the electricity supply is 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,” it stated.

The party cited data from the Association of Small Business Owners of Nigeria to further highlight the impact of excessive borrowing, saying small businesses now struggle to access credit, while investors are losing confidence and leaving the market.

“And because over 60 per cent 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 party said.

The ADC also faulted the government for borrowing more even after the recent naira devaluation, arguing that such a move should ordinarily reduce the need for external loans.

Consequently, the party demanded full transparency regarding all loans taken since 2015.

The African Democratic Congress (ADC) has called for full transparency regarding all loan agreements signed over the past decade by the All Progressives Congress (APC) and the Tinubu administration.

“Nigerians deserve to know the terms, interest rates, repayment timelines, and final beneficiaries of these loans,” the party stated.

The ADC also urged President Tinubu to put an end to what it described as “fiscal recklessness” and instead prioritize genuine economic reforms.

“We urge President Tinubu to abandon this culture of borrowing to mask policy failures and focus on responsible spending and strategic investments that can drive real growth,” the statement added.

Attempts to obtain responses from the Special Adviser to the President on Information, Bayo Onanuga, and the Special Adviser on Policy Communication, Daniel Bwala, were unsuccessful at the time of reporting, as both remained unreachable.