The African Democratic Congress Presidential Campaign Council (ADC-PCC) has asked the National Assembly to reject President Bola Tinubu’s request to borrow $20bn and £1bn unless the Federal Government explains how the loans will benefit Nigerians.
The council said on 27 October that the proposed borrowing could increase Nigeria’s debt burden and limit future governments’ financial choices. It also demanded a full account of loans taken since Tinubu assumed office on 29 May 2023 and the revenue earned from fuel subsidy removal.
The council’s Director of Media and Publicity, Kola Ologbondiyan, said the government had not provided a convincing account of how previous loans and subsidy savings had been spent.
In a press statement, the ADC-PCC criticised the administration’s borrowing plans amid rising living costs, higher taxes and the removal of fuel subsidies. It said millions of Nigerians were facing worsening economic hardship.
Council Demands Account of Loans and Subsidy Savings
Ologbondiyan questioned the purpose of the proposed loans, asking what the government had achieved with the money already borrowed.
“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.”
He also questioned the use of funds saved from fuel subsidy removal and asked why the government wanted to obtain more foreign loans while many citizens struggled to survive.
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The council said borrowing and higher taxation, without matching gains in productivity, infrastructure, employment and citizens’ welfare, could expose Nigeria to a debt trap.
It warned that heavy dependence on foreign creditors could increase debt repayment costs, restrict the choices available to future administrations and weaken Nigeria’s economic independence.
Ologbondiyan said the government must show how the proposed loans would support productive investment, economic growth and improved living standards.
“This is not a sustainable path to national development. It is a dangerous attempt to mortgage the future of Nigeria and generations yet unborn,” he said.
The council also said Nigerians should not bear the cost of loans whose purposes, terms and benefits had not been made clear.
ADC lists conditions for new borrowing
The ADC-PCC called on the National Assembly to examine the loan request carefully and reject it unless the government proves that the borrowing is necessary, affordable and beneficial to Nigerians.
It demanded that Tinubu publish a complete account of domestic and foreign loans obtained since 29 May 2023. The council also wants a detailed breakdown of the revenue generated from fuel subsidy removal and how the funds have been spent.
It further requested full disclosure of the proposed loans’ purposes, interest rates, repayment periods, fees and conditions. It also wants the government to disclose any assets offered as security or guarantees attached to the facilities.
The council said the National Assembly must exercise its oversight powers and ensure that any borrowing agreement does not expose the country to unacceptable financial risks.
“Nigeria cannot borrow its way out of poor economic management. Borrowing must be tied to clearly defined national priorities, transparent expenditure and measurable outcomes. Anything less is an injustice to the Nigerian people,” Ologbondiyan said.
The council maintained that Nigerians had a constitutional and democratic right to know the financial obligations the government was taking on in their name.
WHAT READERS SHOULD KNOW
The ADC-PCC’s position is a demand for greater disclosure and scrutiny, not a confirmation that the proposed loans have been approved or rejected.
Its demands cover existing domestic and foreign debts, subsidy-removal revenue and the full terms of the proposed facilities. These include interest rates, repayment schedules, fees, conditions and any security attached to the loans.
The council has made its support for the borrowing conditional on the government providing evidence of its necessity, sustainability and direct benefits to the public.
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