The African Democratic Congress (ADC) has criticised the Federal Government over its plan to obtain a fresh $1.25 billion World Bank loan, alleging that President Bola Tinubu’s administration is running what it called a “Ponzi economy.”
The opposition party said the new borrowing request adds to Nigeria’s already mounting debt burden, which it put at about N159.28 trillion, raising fresh concerns about the country’s fiscal direction amid worsening economic hardship.
In a statement issued on Thursday by its National Publicity Secretary, Bolaji Abdullahi, the ADC said the administration has continued to rely on borrowing without delivering tangible improvements in the lives of Nigerians.
According to him, “This is why the ADC says the Tinubu administration is running a Ponzi economy, where new loans are constantly being taken to service old debts and cover fiscal failures, while ordinary Nigerians are left to carry the burden.”
He questioned the rationale behind the government’s repeated borrowing, arguing that citizens are becoming poorer despite ongoing reforms and loan inflows.
“At this point, Nigerians must ask a simple question: if this government keeps borrowing trillions of naira every few months, why are Nigerians getting poorer, and why is life getting harder for the majority?” Abdullahi said.
The party maintained that the rising debt profile has not translated into improved living standards, infrastructure development, or economic relief for households and businesses.
It stated that “Nigeria’s total public debt has risen to about N159.28 trillion, yet food prices continue to rise daily, electricity tariffs are increasing, the naira remains weak, businesses are shutting down, insecurity is spreading, and millions of young Nigerians remain unemployed.”
The ADC also warned that increasing debt servicing obligations could further strain government finances and limit investment in critical sectors.
Citing projections attributed to President Tinubu, the party said Nigeria may spend about $11.6 billion (over N15 trillion) on debt servicing in 2026, a development it described as troubling.
It argued that such expenditure would reduce available funds for education, healthcare, infrastructure, agriculture, security, and job creation.
The opposition party also criticised what it described as the frequent rebranding of loan programmes, saying successive borrowings have been packaged under different names without delivering meaningful results.
It added that economic reforms such as fuel subsidy removal, naira devaluation, and tariff increases have worsened hardship rather than easing it, contrary to government assurances.
The ADC further accused the National Assembly of failing in its oversight responsibilities, alleging that lawmakers have consistently approved large borrowing requests without adequate scrutiny.
“Nigeria cannot continue mortgaging the future of unborn generations simply to keep the current administration afloat,” Abdullahi said, warning that ordinary citizens are already bearing the consequences through inflation, unemployment, and rising poverty.
Leave a Reply