…Opposition Demands Full Disclosure Of Previous Borrowings, Subsidy Savings
…Party Urges National Assembly To Reject Proposal Without Clear Repayment Plan
Daud Olatunji
President Bola Tinubu has asked the National Assembly to approve fresh external loans of $20.52bn and €1.04bn to finance projects and programmes across various sectors, triggering criticism from the African Democratic Congress, which accused the administration of mortgaging Nigeria’s future.
The ADC Presidential Campaign Council described the proposed borrowing as reckless, warning that continued dependence on foreign loans without transparent accounting of previous facilities could deepen the country’s debt burden and constrain future governments.
The request, conveyed in a letter read by Senate President Godswill Akpabio during plenary on Tuesday, October 27, comes amid mounting public concerns over the cost of living, government borrowing and the impact of economic reforms introduced by the Tinubu administration.
The proposed facilities, comprising $20.52bn and €1.04bn, are intended to finance projects and programmes across several sectors. However, the specific breakdown of the projects, loan terms and repayment arrangements was not provided in the material available to PLATFORM TIMES.
The fresh borrowing proposal has also renewed scrutiny of the administration’s fiscal strategy, particularly following earlier borrowing approvals and the government’s removal of the petrol subsidy.
In a statement signed by its Director of Media and Publicity, Kola Ologbondiyan, the ADC questioned the justification for the additional loans, demanding explanations on the utilisation of previous borrowings and the revenue generated from subsidy removal.
“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,” Ologbondiyan said.
The party also questioned why the Federal Government was seeking additional foreign financing while many Nigerians continued to struggle with rising living costs and other economic pressures.
“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 ADC spokesperson asked.
The ADC argued that the government must demonstrate how previous loans and funds saved from subsidy removal had translated into tangible improvements in infrastructure, employment, electricity supply, healthcare and citizens’ welfare.
It warned that a development strategy driven largely by borrowing and increased taxation, without corresponding improvements in productivity and living standards, could expose Nigeria to unsustainable debt obligations.
“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 stated.
According to the party, continued dependence on foreign creditors could increase debt-servicing obligations, reduce the resources available for essential public services and restrict the policy options available to future administrations.
The opposition party further warned that excessive borrowing could undermine Nigeria’s economic independence if the government failed to demonstrate that the loans would generate sufficient economic returns to justify their cost.
“President Tinubu cannot continue to impose painful economic sacrifices on Nigerians, claim the benefits of subsidy removal and, at the same time, seek enormous additional loans without adequately explaining how the resources already available to his government have been spent,” Ologbondiyan said.
The ADC called on the National Assembly to subject the proposed facilities to rigorous scrutiny and reject them unless the Federal Government provides convincing evidence of their necessity, affordability and likely benefits to Nigerians.
It urged lawmakers to demand a comprehensive account of all domestic and foreign loans obtained by the Tinubu administration since it assumed office on May 29, 2023.
The party also called for full disclosure of the revenue realised from petrol subsidy removal and how the proceeds had been spent.
Among other demands, the ADC asked the government to publish details of the proposed loans, including interest rates, repayment periods, associated fees, conditions attached to the facilities and any collateral or guarantees involved.
It maintained that Nigerians had a right to understand the financial obligations being incurred on their behalf and the implications for public spending and future generations.
“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 party also warned the National Assembly against approving the proposal without exercising its oversight responsibilities, insisting that lawmakers must ensure that the borrowing arrangements do not expose the country to unacceptable financial risks.
The latest request follows the National Assembly’s approval in March 2026 of two external financing facilities sought by the Tinubu administration, totalling $6bn.
The facilities reportedly included a proposed $5bn financing programme from First Abu Dhabi Bank in the United Arab Emirates and a $1bn United Kingdom-backed export credit facility arranged through Citibank for the rehabilitation of the Lagos Port Complex and Tin Can Island Port.
The Federal Government said the $5bn facility would support budget implementation, finance priority infrastructure projects and refinance existing high-cost domestic and external debts.
The $1bn facility was intended to fund the reconstruction and rehabilitation of the two major Lagos ports.
The Senate approved the requests after considering a report by its Committee on Local and Foreign Debts.
In July 2025, the Senate also approved an external borrowing plan of more than $21bn for the 2025 and 2026 fiscal years.
The package reportedly included approximately $21.19bn in direct foreign loans, €4bn, ¥15bn, a $65m grant and additional domestic borrowing through government bonds.
The proposed financing was intended to support projects in infrastructure, agriculture, healthcare, education, security, housing, railway development, power generation and digital connectivity.
However, the scale of the borrowing plan raised concerns among some lawmakers over transparency and repayment obligations.
During deliberations in July 2025, Senator Abdul Ningi questioned whether the documentation presented to the Senate adequately explained how the loans would be repaid, calling for a detailed breakdown of the proposed borrowing.
Lawmakers who supported the plan argued that the facilities were necessary to finance critical infrastructure and support implementation of the national budget.
The latest request comes as Nigeria prepares for the 2027 general elections, placing the administration’s borrowing strategy under renewed political and public scrutiny.
The ADC has demanded that the government explain how the proposed loans would contribute to productive investment, economic growth and improved living standards rather than impose additional liabilities on future generations.
The party insisted that the Federal Government must provide measurable evidence of the benefits of its borrowing decisions and account for funds already available to it.
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