The Federal Government’s economic management came under fresh scrutiny on Tuesday after the African Democratic Congress (ADC) accused President Bola Ahmed Tinubu and APC governors of allegedly diverting over N800 billion from Federation Account Allocation Committee (FAAC) funds for 2027 politics, even as the administration defended new tax reforms and warned that Nigeria could no longer rely on borrowing to finance development.

The opposition party’s allegation, coming amid reports of renewed talks with the World Bank over a fresh $1.25 billion loan facility, has intensified concerns over public finance management, fiscal transparency and the growing hardship facing Nigerians under the government’s economic reforms.

While the ADC accused the ruling party of converting public resources into a political “war chest” ahead of the next general election, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, insisted that the country must urgently build a sustainable fiscal system capable of funding infrastructure, healthcare, education and social protection without excessive dependence on debt.

In a statement issued by its National Publicity Secretary, Bolaji Abdullahi, the ADC described the alleged diversion of FAAC allocations for political purposes as “shameless, cruel, and criminal”.

The party said reports alleging that over N800 billion was raised through deductions from FAAC allocations confirmed what Nigerians had long suspected about the APC administration.

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“The report alleging that over N800 billion was raised through deductions from FAAC allocations for political purposes confirms what Nigerians have long suspected, that while the administration continues to tell the people to endure the pains of its ill-fated economic reforms, the APC has been converting public resources into a war chest for 2027 politics,” the party stated.

The ADC argued that despite record allocations to states following subsidy removal and naira devaluation policies, citizens had continued to experience worsening poverty and hardship.

“Under this APC government, states are receiving more money than at any other period in Nigeria’s history, yet Nigerians are poorer, hungrier, and more desperate than ever before,” it said.

“Roads are still collapsing. Hospitals are still empty. Schools are still underfunded. Workers are underpaid. Communities remain unsafe. The only thing growing is the political appetite of the ruling party.”

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The opposition party maintained that if the allegations published by The Will were true, they would amount to political corruption and theft of resources meant for development and citizens’ welfare.

“FAAC allocations are meant for development, salaries, healthcare, education, infrastructure, security, and the welfare of citizens, not for financing the re-election plans of one man,” the statement added.

The ADC also called for an independent investigation into the alleged deductions and related accounts reportedly linked to the operation.