The African Democratic Congress (ADC) has strongly criticised President Bola Ahmed Tinubu’s proposed 2026 federal budget, describing it as a dangerous debt trap rather than a genuine reform agenda capable of rescuing Nigeria from its worsening economic crisis.
The opposition party said the budget framework, which relies heavily on fresh borrowing to fund recurrent and capital expenditure, risks plunging the country deeper into fiscal distress at a time when debt servicing already consumes a significant portion of national revenue.
In a statement issued on Sunday, the ADC argued that the budget reflects a continuation of what it called “borrow-to-survive governance,” warning that Nigeria is fast approaching a point where future generations will be saddled with unsustainable debt obligations.
According to the party, the proposed budget places excessive emphasis on loans, both domestic and foreign, without a corresponding strategy to grow revenue, expand production, or stimulate broad-based economic growth.
The ADC maintained that rather than reforming public finance, the Tinubu administration is merely restructuring fiscal pressure, shifting today’s economic burden onto tomorrow’s taxpayers.
The party noted that Nigeria’s debt profile has risen sharply over the past decade, with debt servicing costs now outpacing spending on critical sectors such as education, healthcare, and social welfare.
It warned that continued borrowing under the 2026 budget plan could further weaken the naira, increase inflationary pressure, and reduce the government’s capacity to respond to future economic shocks.
The ADC also faulted what it described as a lack of transparency in the budget’s assumptions, particularly projections around oil production, oil prices, and exchange rate stability.
It argued that repeated failure to meet oil output targets has made revenue projections unreliable, turning budgets into deficit-heavy documents almost immediately after implementation begins.
According to the party, this pattern has forced successive administrations to resort to emergency borrowing, worsening Nigeria’s debt-to-GDP ratio.
The ADC further accused the federal government of failing to demonstrate fiscal discipline, pointing to what it described as bloated governance costs, rising allowances for political office holders, and an expanding bureaucracy.
It said any serious reform-oriented budget should begin with drastic cuts in the cost of governance, elimination of waste, and redirection of funds to productive sectors such as agriculture, manufacturing, and small businesses.
The party stressed that borrowing, when unavoidable, must be tied strictly to projects that generate economic returns and improve revenue capacity, not to fund salaries, overheads, and debt servicing.
Reacting to the criticism, government officials have previously defended the Tinubu administration’s fiscal approach, arguing that borrowing remains necessary to fund infrastructure, stabilize the economy, and address long-standing development gaps.
They have insisted that recent economic reforms, including fuel subsidy removal and exchange rate unification, are laying the foundation for long-term growth, even if short-term pain persists.
However, the ADC dismissed these arguments, stating that reforms without social protection, job creation, and industrial expansion amount to hardship without hope for ordinary Nigerians.
The party warned that rising poverty levels, unemployment, and declining purchasing power show that current fiscal policies are failing to translate into improved living standards.
Diaspora Digital Media (DDM) reports that Nigeria’s total public debt has continued to climb amid declining real incomes and persistent inflation, raising concerns among economists about debt sustainability.
Financial analysts have repeatedly cautioned that without aggressive revenue diversification and expenditure control, Nigeria could face severe fiscal constraints in the coming years.
The ADC called on the National Assembly to subject the 2026 budget to rigorous scrutiny, urging lawmakers to resist approving what it termed a “borrowing-heavy document” without clear reform benchmarks.
It also urged civil society groups, labour unions, and professional bodies to engage actively in the budget process to ensure accountability and fiscal responsibility.
As debates over the 2026 budget intensify, the controversy underscores growing political and public anxiety over Nigeria’s debt trajectory and the broader question of whether current economic policies can deliver inclusive and sustainable growth.
DDM gathered that the ADC plans to release a detailed alternative fiscal framework outlining its proposals for revenue generation, spending discipline, and debt management ahead of the final budget approval process.