The African Democratic Congress (ADC) has launched a sharp attack on the Federal Government over its plan to secure another $1.25 billion World Bank loan, accusing the President Bola Tinubu-led administration of running what it described as a “Ponzi economy.”
The opposition party said the latest borrowing request comes at a time Nigeria’s public debt has reportedly risen to about N159.28 trillion, deepening concerns over the country’s fiscal stability amid worsening economic hardship.
In a statement on Thursday, the ADC National Publicity Secretary, Bolaji Abdullahi, said the government’s continuous reliance on loans without visible improvement in citizens’ welfare amounts to economic mismanagement.
“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 said.
He questioned the impact of the government’s borrowing profile on the living conditions of Nigerians, noting that inflation, unemployment, food prices, and business closures continue to worsen despite extensive reforms.
“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?” he added.
The party argued that Nigeria’s rising debt stock has not translated into improved infrastructure or economic relief for households and businesses.
According to the ADC, “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.”
It further lamented that families are struggling to survive, with many reducing meals, while manufacturers and small businesses are closing shop due to harsh economic conditions.
The opposition party also raised concerns over projected debt servicing obligations, warning that development funding could be consumed by loan repayments.
Abdullahi referenced comments attributed to President Tinubu that Nigeria could spend about $11.6 billion (over N15 trillion) on debt servicing in 2026, describing the figure as alarming.
He argued that such expenditures would divert funds away from critical sectors such as education, healthcare, infrastructure, agriculture, and job creation.
The ADC also criticised what it described as repeated rebranding of borrowing programmes, saying successive loan requests have been packaged under different names while yielding little tangible impact.
“The government removed fuel subsidy, devalued the naira, increased electricity tariffs, and imposed painful economic policies on citizens, promising that sacrifice would lead to recovery. Instead, Nigerians continue to suffer one of the worst cost-of-living crises in recent history,” the statement added.
The party further accused the National Assembly of failing in its oversight role, alleging that lawmakers have become a “rubber stamp” in approving borrowing requests without sufficient scrutiny.
“Nigeria cannot continue mortgaging the future of unborn generations simply to keep the current administration politically afloat,” Abdullahi warned, adding that ordinary Nigerians are already bearing the burden through inflation, hunger, unemployment, and business closures.