By Ada Samson, Abuja
The Federal Government has dismissed the African Democratic Congress (ADC)’s objections to Nigeria’s $22.5 billion external borrowing plan, noting that the alarm raised by the opposition were “unwarranted” and based on “misleading narratives.”
The rebuttal was contained in a Monday statement signed by Mohammed Manga, Director Information and Public Relations, Federal Ministry of Finance, in which the government reiterated that the loan framework, approved by the National Assembly, is a strategic economic measure designed to fund critical infrastructure without plunging the nation into unsustainable debt.
The controversy over the $22.5 billion external loan recently approved by the National Assembly for the Federal Government is unwarranted”
“It’s remarkable that, despite the Federal Ministry of Finance providing a detailed explanation of the loan’s purpose and terms two months ago, some critics are still raising unnecessary questions and concerns”, the Federal Ministry of Finance stated.
The government clarified that the borrowing plan, spanning 2024 to 2026, does not mean immediate withdrawal but rather a structured approach to financial planning.
“The borrowing plan does not equate to actual borrowing for the period. The actual borrowing for each year is contained in the annual budget. In 2025, the external borrowing component is US $1.23 billion, and it has not yet been drawn. This is planned for H2 2025″, the government explained.
Emphasising the project specific nature of the loans, the statement noted:
“A large proportion of projects in the 2024–2026 rolling plan have multi-year drawdowns of between 5–7 years, which are project tied loans. These projects cut across critical sectors of the economy, including power grids and transmission lines, irrigation for improving food security, fibre optics network across the country, fighter jets for security, and rail and road infrastructure.”
Addressing concerns about debt sustainability, the government argued that Nigeria’s fiscal position is improving.
“The debt service to revenue ratio has started decreasing from its peak of over 90% in 2023. The government has ended the distortionary and inflationary ways and means.”
It further highlighted revenue reforms, including stricter monitoring of state owned enterprises, as proof of fiscal responsibility.
The statement also took aim at critics, urging them to engage with facts rather than “unsubstantiated claims.”
“Effective opposition requires engagement based on verifiable facts and precise analysis, rather than relying on lies, misleading narratives, or unsubstantiated claims. This is the only way criticism can be used to forge a healthy democracy.”
Defending the choice of lenders, the government noted:
“The majority of the proposed borrowing will be sourced from Nigeria’s development partners, including the World Bank, African Development Bank, French Development Agency, European Investment Bank, JICA, China EximBank, and the Islamic Development Bank. These institutions offer concessional financing with favourable terms and long repayment periods.”
The government concluded by reaffirming its commitment to transparency, stating:
“We reaffirm our dedication to fiscal discipline, transparency, and accountability. Constructive public engagement and legislative oversight are vital components of our journey toward long-term economic stability and inclusive national prosperity.”
Spear News reports that the African Democratic Congress (ADC) yesterday raised concerns over Nigeria’s escalating public debt, now nearing N200 trillion, calling for greater transparency in how borrowed funds have been utilised over the past decade.
In a statement, the opposition party questioned the sustainability of the current administration’s borrowing habits and demanded a full audit of all loans acquired since 2015.
“What Nigerians are witnessing is a reckless accumulation of debt with little to show for it,” said Mallam Bolaji Abdullahi, ADC’s National Publicity Secretary.
“Under President Buhari, Nigeria borrowed an average of N4.7 trillion yearly, but under President Tinubu, that figure has skyrocketed to nearly N50 trillion annually. If this continues, our children will inherit a crippling debt burden without the infrastructure or economic growth to justify it.”
The ADC’s remarks follow the National Assembly’s recent approval of an additional $21 billion in foreign loans, a decision the party described as “rubber-stamping fiscal irresponsibility.”
Abdullahi accused lawmakers of failing to scrutinise the government’s borrowing spree, stating, “The National Assembly has a duty to protect Nigerians from unsustainable debt, but instead, it has become a mere approval machine. Where is the oversight? Where is the accountability?”
A major point of contention is the exchange rate’s impact on debt repayment. While government supporters argue that President Tinubu’s borrowing in dollar terms ($1.7 billion per year) is lower than his predecessor’s ($4.15 billion), the ADC countered that naira devaluation has made repayments far costlier.
“When converted to naira, Tinubu’s foreign loans amount to N25.5 trillion yearly—more than ten times Buhari’s annual average of N2.2 trillion. This is not prudent economics; it is a debt trap worsened by poor policy choices”, Abdullahi noted.
The party highlighted that Nigeria’s total public debt has surged from N12.6 trillion in 2015 to over N149 trillion in 2025, with external borrowing alone exceeding $35 billion under the ruling All Progressives Congress (APC).
“Our World Bank debt has tripled, Eurobond debts have grown elevenfold, and now the government wants to push our foreign debt ceiling to $67 billion,” Abdullahi said. “Yet, our hospitals remain under-equipped, universities underfunded, and power supply unreliable. Nigerians deserve to know: where did all this money go?”, he asked.
The ADC also warned of the broader economic consequences, citing reports that over 60% of national revenue now services debt. “Small businesses are struggling to access credit, investors are losing confidence, and ordinary Nigerians are being taxed into hardship,” Abdullahi stated.
“While other nations are reducing their debt burdens, our government is borrowing more—even after a damaging naira devaluation that should have discouraged further external loans.”
In response, the party demanded full disclosure of all loan agreements from the past decade, including terms, interest rates, and beneficiaries.
“Nigerians have a right to know how these loans were spent and who ultimately benefited,” Abdullahi insisted. “We cannot keep borrowing without a clear repayment plan or measurable developmental impact.”
The ADC called on President Tinubu to shift focus from “borrowing to cover failures” to implementing “meaningful reforms, wise investments, and responsible spending.” The statement concluded with an appeal for restraint: “The era of fiscal recklessness must end. Nigeria’s future depends on sustainable economic policies, not endless debt accumulation.”
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