Opposition parties, the Social Democratic Party (SDP) and the Labour Party (LP), have raised concerns over the Federal Government’s proposed 2026 budget, warning that its heavy reliance on borrowing could worsen economic hardship for Nigerians.
In separate reactions on Sunday, the parties criticised the budget framework, describing it as debt-driven and unsustainable. They argued that continued deficit financing and rising public debt would place additional pressure on the economy, weaken the naira and further erode citizens’ purchasing power.
The SDP said the growing debt profile raises serious questions about fiscal responsibility and intergenerational equity. According to the party, excessive borrowing to fund recurrent expenditure and large-scale projects without corresponding revenue growth could mortgage the country’s future.
Similarly, the Labour Party warned that increasing debt servicing obligations would crowd out spending on critical sectors such as education, healthcare and social welfare. The party noted that ordinary Nigerians are already grappling with high inflation, unemployment and rising living costs.
“The burden of debt repayment will ultimately be passed on to citizens through higher taxes, reduced public services and declining living standards,” an LP spokesperson said.
Both parties called on the Federal Government to prioritise revenue generation, cut wasteful spending and focus on policies that stimulate production, industrial growth and job creation rather than accumulating more loans.
They urged the National Assembly to thoroughly scrutinise the 2026 budget proposal to ensure fiscal discipline, transparency and a stronger focus on easing the economic challenges facing Nigerians.
The Federal Government has yet to respond to the criticisms, but has previously maintained that borrowing is necessary to fund infrastructure and drive economic growth.
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