ADC: 2026 Budget is a debt trap masquerading as reform

The African Democratic Congress (ADC) has criticised the 2026 Appropriation Bill presented by President Bola Ahmed Tinubu to the National Assembly, describing it as a continuation of fiscal recklessness and renewed wishful thinking.

In a statement titled “A Budget of Quicksand, Debts and Wishful Thinking”, the party said its team of economists reviewed the proposal and concluded that, despite being presented as a “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” it merely entrenches what it called the administration’s poor fiscal record.

ADC said if approved, the budget would only lead to more borrowing and hardship, arguing that the proposal copies “the templates of the failed, unimplemented and perhaps, unimplementable 2024 and 2025 budgets” and is likely to suffer the same fate, with most of its execution deferred.

The statement, signed by the party’s National Publicity Secretary, Mallam Bolaji Abdullahi, said Nigeria is witnessing an attempt to build a house on quicksand, noting that a new fiscal framework is being proposed at a time when the 2025 budget has only just been repealed and reenacted, which it described as a display of “unprecedented fiscal chaos and administrative incompetence.”

ADC said Nigeria is already trapped in a fiscal crisis but accused the administration of avoiding hard choices and relying on unsustainable borrowing while indulging in “financial profligacy.”

The party said, “This administration fails to grasp a fundamental economic truth: no amount of monetary tinkering or Central Bank intervention can rescue an economy if the government refuses to embrace fiscal discipline and budget credibility.

“What we have seen under this APC administration is a chaotic attempt to implement more than four budgets simultaneously because it lacks the basic competence to close out previous cycles and adhere to its own timelines.

“Governments may extend budget implementation period or manage multiple supplementary budgets, but operating three or more national budgets simultaneously, is President Tinubu’s original contribution to fiscal chaos. It has never happened before in this country.

“Overall, what is most evident is the administration’s penchant for turning fiscal planning into a hollow ritual and political ceremonies that mock the suffering of the Nigerian people. While revenues were pushed to N20tn in 2024—a figure driven more by the pains of currency devaluation than by genuine economic productivity—the government had the audacity to double its projections to N40tn for 2025 and even raising it to N58.57tn in 2026. This is not vision; it is fantasy.”

The party further said the 2026 budget lacks sufficient detail and is built on weak assumptions, warning that it relies on unrealistic oil price benchmarks and revenue projections at a time of declining global prices.

ADC stated, “Perhaps most terrifying is the sheer scale of the deficit and what it reveals about this government’s lack of concern for the next generation. This administration behaves as if after them, there would be no Nigeria anymore. A budget that plans to generate N34tn in revenue while borrowing N24tn is an admission of fiscal insolvency. In no sane or functional fiscal system would a deficit-to-revenue ratio of 70% be considered acceptable or even be contemplated at all.

“The document presented before the National Assembly on December 19 is a debt trap masquerading as a budget. The government claims it will spend N25.68tn on capital expenditure, yet with a projected deficit of N23.85tn, it is clear that almost every single bridge, road, or project is being funded by high-interest debts. Even with a transparent capital plan in place, this on its own calls for concern.

“But it is even more alarming when government borrows mindlessly to fund opaque and often frivolous expenditures. It is one thing to squander current revenues on the excesses of the state, but it is unpardonable sin to raise massive debts to fund reckless spending, effectively burying our children under a mountain of debt obligations before they even enter the workforce.”

The ADC said the fundamentals of the budget show a lack of revenue credibility and weak deficit management, warning that rising debt servicing costs already reflect the consequences.

The party added, “This administration has hit a wall, and it is clear that they are blinded by their own propaganda. The Federal Government of Nigeria is in desperate need of a new pair of eyes and a radical departure from this path of ruin to rebuild a fiscal structure that serves the people rather than just the creditors.”

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