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 growing public debt estimated at N159.28 trillion.
The opposition party said the fresh borrowing had heightened concerns over the country’s rising debt burden at a time many Nigerians are battling inflation, rising food prices, unemployment, business closures, and worsening living conditions nearly two years after the administration introduced major economic reforms.
The allegation was contained in a statement issued by the party’s National Publicity Secretary, Bolaji Abdullahi, who accused the government of piling up debts without any visible improvement in the lives of ordinary citizens.
“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.
“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, the country’s rising debt profile has not translated into noticeable improvements in key sectors or relief for struggling households and businesses.
“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,” the party stated.
“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 party also expressed concern over the Federal Government’s projected debt servicing obligations for 2026, warning that funds meant for development could be consumed by loan repayments.
“It is noteworthy that President Bola Tinubu himself has declared that Nigeria will spend about $11.6 billion, over N15 trillion, on debt servicing alone in 2026,” Abdullahi said.
“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.”
He further criticised the government’s borrowing policies, saying, “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 ADC also noted that Nigerians were still struggling with the effects of fuel subsidy removal, naira devaluation, and increased electricity tariffs introduced by the current administration.
“The government removed fuel subsidy, devalued the Naira, increased electricity tariffs, and imposed painful economic policies on citizens, promising that temporary sacrifice would lead to long-term recovery.
“Instead, Nigerians have continued to suffer one of the worst cost-of-living crises in recent history, while the government continues to pile on more debts.”
The opposition party also accused the National Assembly of failing in its oversight responsibilities.
“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,” the statement added.
Warning against what it described as mortgaging Nigeria’s future, Abdullahi said ordinary Nigerians were already paying the price for the country’s mounting debt burden.
“Nigeria cannot continue mortgaging the future of unborn generations simply to keep the present 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,” he said.
