ADC-PCC Faults Tinubu’s Proposed $20bn, £1bn Loans, Warns of Debt Burden on Future Generations

The African Democratic Congress Presidential Campaign Council (ADC-PCC) has criticised President Bola Tinubu’s request for legislative approval to secure additional foreign loans of $20 billion and £1 billion, warning that the proposed borrowing could deepen Nigeria’s debt burden and threaten its economic sovereignty.

The council described the proposed loans as excessive and potentially damaging to the country’s economic future, arguing that the government must account for existing debts and explain how funds generated from the removal of fuel subsidies have been utilised.

In a statement, the Director of Media and Publicity of the ADC-PCC, Kola Ologbondiyan, questioned the rationale for seeking additional foreign loans amid rising living costs, increased taxation and mounting economic pressures on households.

Ologbondiyan said Nigerians deserved a detailed explanation of how previous borrowings and savings from subsidy removal had been spent before the government committed the country to further debt obligations.

“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 said.

He also questioned the utilisation of funds saved from fuel subsidy removal and the purpose of the proposed foreign loans, insisting that the government must demonstrate tangible benefits from its borrowing decisions.

ADC-PCC Raises Concerns Over Debt Sustainability

The council argued that continued reliance on foreign borrowing and increased taxation, without corresponding improvements in productivity, infrastructure, employment and citizens’ welfare, could expose Nigeria to long-term fiscal challenges.

According to Ologbondiyan, the proposed borrowing raises questions about the administration’s fiscal priorities, economic direction and commitment to transparency.

He warned that accumulating foreign debt without clearly demonstrating its benefits could place an additional financial burden on future generations.

“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 said.

He added that the government should not continue to demand economic sacrifices from Nigerians while seeking additional loans without providing a comprehensive account of how existing resources have been deployed.

The ADC-PCC further warned that excessive dependence on foreign creditors could increase debt-servicing obligations, limit the policy options available to future administrations and weaken Nigeria’s economic independence.

Council Demands Transparency on Proposed Loans

The opposition campaign council called on the National Assembly to subject the proposed borrowing to rigorous scrutiny and reject the request unless the Federal Government provides convincing evidence of its necessity, sustainability and expected benefits.

It also urged President Tinubu to publish a comprehensive account of all domestic and foreign loans obtained since May 29, 2023, including details of how the funds have been utilised.

The council specifically demanded a breakdown of revenue generated from fuel subsidy removal and an explanation of how the proceeds had been applied.

It further called for the disclosure of the proposed loans’ purposes, interest rates, repayment schedules, associated fees, conditions and any collateral or guarantees attached to the facilities.

According to the ADC-PCC, Nigerians have a democratic right to understand the financial obligations being incurred on their behalf and the implications for the country’s long-term economic outlook.

National Assembly Urged to Exercise Oversight

The council maintained that borrowing should be tied to clearly defined national priorities, transparent expenditure and measurable development outcomes.

It urged federal lawmakers to exercise their oversight responsibilities by examining the proposed facilities and ensuring that the terms would not expose the country to unsustainable 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,” the council stated.

The ADC-PCC also warned against arrangements that could leave Nigerians servicing loans for years without clear evidence of the economic and social benefits.

It insisted that the Federal Government must demonstrate how the proposed borrowing would support productive investment, stimulate economic growth and improve living standards.

The council’s position centres on demands for greater transparency, accountability and legislative scrutiny of Nigeria’s borrowing plans, particularly as households continue to contend with economic pressures.

The proposed $20 billion and £1 billion facilities would add to the country’s financial obligations if approved and secured. Their implications would depend on the terms of the loans, how the funds are deployed and the returns generated from the investments they finance.