The African Democratic Congress (ADC) has accused the Tinubu administration of borrowing to service existing debts, describing the federal government’s economic management style as a “Ponzi economy.”
The opposition party made the allegation following the government’s move to seek a fresh $1.25 billion loan from the World Bank despite Nigeria’s rising public debt profile, estimated at about N159.28 trillion.
In a statement signed by its National Publicity Secretary, Bolaji Abdullahi, the ADC expressed concern over what it described as the growing dependence of the Tinubu administration on external borrowing while Nigerians continue to face economic hardship.
“The African Democratic Congress (ADC) is deeply alarmed by the Tinubu administration’s latest move to seek another fresh $1.25 billion World Bank loan, coming barely weeks after the National Assembly approved yet another round of external borrowing running into billions of dollars,” the statement read.
According to the party, Nigerians have continued to experience worsening living conditions despite repeated borrowing by the government.
“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 ADC queried.
The party noted that rising food prices, increasing electricity tariffs, naira depreciation, insecurity, unemployment, and the collapse of small businesses were evidence that the economic situation had deteriorated under the current administration.
“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,” the statement added.
The ADC also cited projections that Nigeria could spend about $11.6 billion, estimated at over N15 trillion, on debt servicing in 2026, warning that such spending could undermine investments in infrastructure, healthcare, education, agriculture, security, and job creation.
The opposition party further criticised the pace of borrowing by the administration since it assumed office in May 2023, alleging that different policy programmes and initiatives were being used to justify additional loans without corresponding improvements in the lives of citizens.
“Each time they want to borrow money, this government invents a new acronym. From ARMOR 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 stated.
The party also faulted the removal of fuel subsidy, naira devaluation, and increased electricity tariffs, arguing that Nigerians had endured painful economic reforms without seeing the promised relief or economic recovery.
According to the ADC, the National Assembly has failed to effectively scrutinise the Federal Government’s borrowing requests, accusing lawmakers of acting as a “rubber stamp” for the executive.
“The ADC is equally concerned that the National Assembly, which should serve as a check on executive excesses, has been reduced to a mere rubber stamp, approving massive borrowing requests with little resistance or serious public scrutiny,” the statement said.
The party warned that continued borrowing could mortgage the future of younger generations and deepen the country’s economic challenges.
It maintained that Nigeria needed leadership focused on industrialisation, agriculture, stable electricity, security, support for local businesses, and sustainable job creation rather than dependence on debt accumulation.
