Tinubu’s $21bn loan debt trap for Nigeria – ADC

The National Assembly approved an additional $21 billion in foreign loan on Sunday, prompting the African Democratic Congress to denounce what it called the “fiscal vandalism” of President Bola Tinubu’s management.

Nigeria’s national debt could surpass N200 trillion by the end of 2025, according to the party, despite the country’s apparent lack of economic benefits.

In a statement released by Mallam Bolaji Abdullahi, its National Publicity Secretary, the ADC charged that Tinubu was hastening Nigeria’s decline into a debt trap that was significantly worse than the one the nation had under his predecessor.

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“What Nigerians are witnessing, following the approval of a fresh $21bn in foreign loans, is nothing short of a calculated decision to mortgage the country’s future just to cover up the failures of today,” the party stated.

The ADC said, citing government figures, that the nation borrowed an average of N4.7 trillion per year under former President Muhammadu Buhari.

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.

“Those in charge seem to have no brakes, and we are speeding towards a financial cliff,” the statement continued.

The ADC rejected the Tinubu government’s supporters’ claims that the current borrowing levels were lower in dollar terms, at $1.7 billion per year, than Buhari’s $4.15 billion, instead highlighting the disastrous effects of currency depreciation.

“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.

According to the opposition party, Nigeria’s national debt has increased from N12.6 trillion to over N149 trillion in 2025 since the APC took office in 2015, with over $35 billion borrowed from outside lenders alone within the past ten years.

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The ADC voiced concerns that the rising debt load had not resulted in better services or infrastructure.

“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.

“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 criticised the government for continuing to borrow money despite the recent fall of the naira, claiming that this should typically lessen the need for outside loans.

As a result, the party called for complete disclosure of all loans made since 2015.

“The ADC hereby demands a full disclosure of all loan agreements signed over the past ten years by the APC and the Tinubu government. Nigerians have a right to know the terms, interest rates, payment timelines, and final recipients of the loans,” it stated.

It further urged President Tinubu to end what it called “fiscal recklessness” and focus instead on meaningful economic reforms.

“We also call on President Tinubu to put an end to this fiscal recklessness, and focus instead on meaningful reform, by investing wisely and spending responsibly. The era of borrowing to cover policy failures must come to an end,” the statement concluded.