The opposition Action Democratic Party (ADP) has criticised the Federal Government’s fiscal direction following the presentation of the 2026 Appropriation Bill by President Bola Tinubu, warning that rising public debt, weak budget execution and worsening insecurity are pushing Nigeria toward economic vulnerability.
In a statement issued in Abuja on Tuesday, ADP National Chairman, Yabagi Sani, said the country was grappling with what he described as a “crisis of fiscal credibility,” arguing that successive federal budgets had focused more on headline figures than on delivery and measurable outcomes.
Sani noted that Nigeria’s public debt had risen beyond ₦100 trillion, with debt servicing now taking a disproportionate share of federal revenue, thereby squeezing funds available for social services and capital projects.
He said uncertainties surrounding key assumptions underpinning the 2026 budget particularly crude oil production, exchange rate projections and deficit financing were already weakening investor confidence and complicating business planning.
“Nigeria now faces a crisis of fiscal credibility, not just in the size of budgets, but in execution, clarity and confidence,” Sani said. “While attention is often fixed on headline figures, execution remains the deeper problem.”
According to him, by late 2025, less than 20 per cent of the 2025 capital budget had been released, leaving several critical infrastructure projects stalled across the country.
Sani further warned that debt servicing had grown to consume over 60 per cent of federal revenue, crowding out development spending and worsening fiscal strain.
He pointed to the power sector as a clear example of budgetary failure, noting that Nigeria still generated less than 5,000 megawatts of electricity for a population exceeding 220 million, forcing businesses and households to rely heavily on generators at significant cost.
“An economy cannot industrialise in darkness. Budgeting without execution is not reform. Borrowing without assets is not development,” he said.
While acknowledging that recent economic reforms such as the removal of fuel subsidy and the unification of the foreign exchange market—were presented as necessary, the ADP chairman argued that the absence of effective social protection measures had translated into widespread hardship for Nigerians.
He cited national household surveys indicating that more than 60 per cent of families had suffered a decline in real income since 2023, as inflation and currency depreciation continued to erode savings and purchasing power.
“Economic reform must not become economic punishment. A responsible government reforms and protects,” Sani added.
The party’s comments reflect broader concerns that despite the steady expansion of Nigeria’s annual budgets, improvements in welfare, productivity and social stability have remained limited.
President Tinubu had, last Friday, presented the 2026 Appropriation Bill to the National Assembly, projecting a cautiously improving economy while pledging tighter budget discipline and stronger revenue enforcement across government agencies.
The President also promised a tougher security stance, declaring that all armed non-state actors would be treated as terrorists under his administration’s security doctrine.
Presenting the proposal, titled “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” Tinubu said the fiscal framework was designed to consolidate recent macroeconomic gains, restore investor confidence and translate stability into broad-based prosperity.
He defended the administration’s economic reforms, insisting they were beginning to yield positive results.
