The African Democratic Congress (ADC) has accused the administration of President Bola Tinubu of operating what it described as a “Ponzi economy” following the Federal Government’s move to secure another $1.25 billion loan from the World Bank despite Nigeria’s rising public debt estimated at about N159.28 trillion.
The opposition party said the fresh loan request has heightened concerns over the country’s increasing debt burden at a time many Nigerians are grappling with high food prices, inflation, unemployment, business closures, and worsening living conditions nearly two years after the government introduced major economic reforms.
ADC National Publicity Secretary, Bolaji Abdullahi, said in a statement on Thursday that the government has continued to accumulate debts without noticeable improvement in the lives of ordinary Nigerians.
Abdullahi said: “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.
“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?”
According to the ADC, Nigeria’s growing debt profile has not translated into meaningful development in key sectors or relief for struggling households and businesses.
The party said: “Today, 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.
“Families are cutting down on meals, manufacturers are struggling to survive, and small businesses are collapsing under the weight of inflation and poor economic conditions.”
The ADC also expressed concern over the Federal Government’s projected debt servicing obligations for 2026, warning that funds meant for development may be consumed by loan repayments.
Abdullahi said: “It is noteworthy that President Tinubu himself has declared that Nigeria will spend about $11.6 billion, over N15 trillion, on debt servicing alone in 2026.
“In simple terms, trillions of naira that should have gone into roads, hospitals, schools, electricity, security, agriculture, and job creation will instead go into paying creditors and servicing old loans.
“Each time they want to borrow money, this government invents a new acronym. From armour to reset, hope, or spin, these are merely different labels for the same pretext to continue borrowing without any recourse to measurable impacts on the lives of Nigerians.”
The party added that despite the removal of fuel subsidy, naira devaluation, increased electricity tariffs, and other economic reforms introduced by the administration, Nigerians are still facing one of the worst cost-of-living crises in recent years.
The ADC also accused the national assembly of failing to properly scrutinise borrowing requests from the executive arm of government.
“The ADC is equally concerned that the National Assembly, which should serve as checks on executive excesses, has been reduced to a mere rubber stamp, approving massive borrowing requests with little resistance or serious public scrutiny.
“Nigeria cannot continue mortgaging the future of unborn generations simply to keep the current administration politically afloat.
“At some point, somebody will pay for all this borrowing, and sadly, ordinary Nigerians are already paying through hunger, inflation, unemployment, business closures, and a collapsing standard of living,” Abdullahi said.