The African Democratic Congress, ADC, has strongly criticised President Bola Tinubu’s 2026 budget proposal, describing it as a dangerous debt trap capable of mortgaging Nigeria’s future and worsening the country’s fiscal crisis.
In a preliminary assessment of the budget proposal presented to the National Assembly, the opposition party said the document exposes what it termed deepening fiscal recklessness, weak planning and a troubling disregard for the welfare of future generations.
The ADC faulted the government’s description of the proposal as a “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” arguing that it merely extends what it called failed fiscal practices under the current administration.
In a statement signed by its National Publicity Secretary, Mallam Bolaji Abdullahi, the party said the proposal consolidates policies that have already proven ineffective.
It argued that the budget, if approved, would only deepen Nigeria’s debt burden and intensify economic hardship for citizens.
The ADC said the 2026 proposal mirrors the structure of the 2024 and 2025 budgets, which it described as poorly implemented and largely unimplementable.
The party expressed concern that the government appears to be operating multiple national budgets simultaneously, a practice it said reflects policy inconsistency and administrative disorder.
On revenue projections, the ADC described the figures in the budget as unrealistic and detached from economic realities.
It noted that government revenues rose to about N20 trillion in 2024 mainly due to naira devaluation, before being increased to N40 trillion in 2025 and further projected at N58.57 trillion in the 2026 proposal.
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The party dismissed the trajectory as wishful thinking rather than sound economic planning.
The ADC also questioned the oil benchmark of $64 per barrel used in the budget, warning that softening global oil prices and uncertain production levels make the assumptions risky.
It argued that the projected N34 trillion revenue target relies on conditions that no longer exist and fails to consider alternative economic scenarios.
More troubling, the party said, is the scale of the proposed deficit.
It noted that the government plans to borrow about N24 trillion against projected revenues of N34 trillion, a ratio it described as a clear sign of fiscal distress.
The ADC warned that a deficit-to-revenue ratio of about 70 per cent would be unacceptable in any functional fiscal system.
The review further highlighted rising debt servicing obligations, which the party said are projected to increase from N12.63 trillion in 2024 to N15.52 trillion in 2026.
It warned that such a trajectory would leave little fiscal space for development spending and essential public services.
The ADC urged lawmakers to critically scrutinise the proposal, warning that continued reliance on heavy borrowing to fund recurrent spending could saddle future generations with unsustainable debt and long-term economic instability.
Vanguard News
