The African Democratic Congress (ADC) has criticised the Federal Government’s plan to secure a fresh $1.25 billion loan from the World Bank, describing Nigeria’s economic direction as a “Ponzi economy” driven by rising debt and worsening living conditions.
In a statement issued in Abuja by its National Publicity Secretary, Mallam Bolaji Abdullahi, the opposition party warned that the country risks sliding deeper into a debt trap without corresponding improvements in citizens’ welfare.
“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.
The ADC noted that the proposed loan comes weeks after the National Assembly approved another multi-billion dollar external borrowing plan, raising concerns over what it described as unchecked accumulation of debt.
According to the party, Nigeria’s total public debt has climbed to about N159.28 trillion, while citizens continue to grapple with spiralling food inflation, weak purchasing power, rising electricity tariffs, insecurity, business closures and growing unemployment.
“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,” it said.
The party also cited projections that Nigeria could spend about $11.6 billion—over N15 trillion—on debt servicing in 2026, warning that such obligations would divert funds from critical sectors.
“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 further accused the administration of aggressively pursuing multiple foreign loans since assuming office in May 2023, while introducing various policy programmes under different acronyms to justify continued borrowing.
“Each time they want to borrow money, this government invents a new acronym… these are merely different labels for the same pretext,” the party stated.
While acknowledging key reforms such as fuel subsidy removal, naira floatation and electricity tariff adjustments, the party argued that Nigerians have yet to feel relief, instead facing one of the harshest cost-of-living crises in recent years.
It maintained that responsible borrowing should translate into visible improvements in infrastructure, power supply, job creation and economic productivity—outcomes it said remain largely absent.
The ADC also criticised the National Assembly for allegedly failing to adequately scrutinise borrowing requests, warning that continued debt accumulation could impose a heavy burden on future generations.
“Nigeria cannot continue mortgaging the future of unborn generations… ordinary Nigerians are already paying through hunger, inflation, unemployment and a collapsing standard of living,” the party said.
The opposition party positioned itself as an alternative platform, pledging to prioritise industrialisation, agriculture, energy stability and job creation.
