ADC-PCC Faults Tinubu’s $20bn Loan Plan, Warns Of Debt Trap

The African Democratic Congress Presidential Campaign Council (ADC-PCC) has condemned President Bola Tinubu’s request for approval to borrow an additional $20 billion and €1 billion, warning that the move could mortgage Nigeria’s future and undermine its economic sovereignty.

The opposition campaign council accused the administration of pursuing aggressive foreign borrowing without providing a transparent account of how previous loans and savings from fuel subsidy removal had been spent.

In a statement, the Director of Media and Publicity of the ADC-PCC, Kola Ologbondiyan, questioned the justification for the proposed loans amid rising living costs, increased taxation and worsening economic hardship.

“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?” Ologbondiyan asked.

He added: “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 council warned that excessive borrowing without measurable improvements in infrastructure, productivity, employment and citizens’ welfare could push Nigeria deeper into a debt trap, leaving future administrations with mounting repayment obligations and reduced economic policy options.

“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.

The ADC-PCC argued that the government must demonstrate how the proposed facilities would finance productive investments and improve living standards rather than impose additional liabilities on future generations.

It called on the National Assembly to subject the borrowing request to rigorous scrutiny and reject it unless the Federal Government provides compelling evidence of its necessity, sustainability and expected benefits.

The council also demanded a comprehensive account of all domestic and foreign loans obtained since May 29, 2023, alongside a detailed breakdown of revenue generated from fuel subsidy removal and how the proceeds had been utilised.

It further urged the government to disclose the proposed loans’ purposes, interest rates, repayment schedules, fees, conditions and any collateral or guarantees attached to the facilities.

“Nigeria cannot borrow its way out of poor economic management. Borrowing must be tied to clearly defined national priorities, transparent expenditure and measurable outcomes,” the ADC-PCC said, urging lawmakers to uphold their oversight responsibilities and protect the country’s fiscal future.

President Tinubu had on Tuesday sought approval of the National Assembly for the loans citing the need for the government to address funding gaps in infrastructure, agriculture, healthcare, water supply, education, job creation among others.

The President stated In his letter to the parliament that the funds would be used to fund projects that directly impact on the Nigerian people across the 36 states and the Federal Capital Territory (FCT).