The opposition African Democratic Congress (ADC) has accused the administration of Bola Ahmed Tinubu of running what it described as a “Ponzi economy” amid plans to secure another $1.25 billion loan from the World Bank.
In a statement issued on Friday by the party’s National Publicity Secretary, Bolaji Abdullahi, the ADC said it was “deeply alarmed” by the Federal Government’s continued borrowing, especially coming shortly after the National Assembly approved fresh external loans running into billions of dollars.
The party questioned why Nigerians were experiencing worsening economic hardship despite the growing debt profile.
“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?” the statement read.
According to the ADC, Nigeria’s public debt has risen to about N159.28 trillion, while inflation, rising food prices, high electricity tariffs, unemployment, insecurity, and business closures continue to affect citizens across the country.
“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,” Abdullahi stated.
The party also referenced the President’s projection that Nigeria could spend about $11.6 billion, estimated at over N15 trillion, on debt servicing 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,” the statement added.
The ADC criticised the pace of borrowing since Tinubu assumed office in May 2023, alleging that the government continued to introduce programmes under different names “without measurable impacts on the lives of Nigerians.”
“From ARMOR to RESET, HOPE, or SPIN, these are merely different labels for the same pretext to continue borrowing,” the party said.
The opposition party further argued that despite major economic reforms such as fuel subsidy removal, naira devaluation, and electricity tariff increases, Nigerians had yet to see the promised economic recovery.
“A serious government borrows to build industries, stabilize power, create jobs, expand exports, improve transportation, and grow the economy in ways that citizens can actually feel,” the statement noted.
The ADC also accused the National Assembly of failing in its oversight responsibilities by approving borrowing requests without sufficient scrutiny.
“The National Assembly, which should serve as checks on executive excesses, has been reduced to a mere rubber stamp,” the party alleged.
Calling for a different economic direction, the ADC said Nigeria needed leadership focused on industrialisation, agriculture, stable electricity supply, local business support, and job creation rather than continued debt accumulation.