By Clement John
The opposition African Democratic Congress has criticised the Federal Government’s plan to secure a fresh $1.25 billion loan from the World Bank, describing the country’s economic direction under President Bola Ahmed Tinubu as a “Ponzi-style economy” driven by mounting debt and worsening hardship.
The party said the proposed loan, coming amid Nigeria’s rising public debt estimated at about N159.28 trillion, has heightened concerns over the country’s growing debt burden at a time many citizens are battling inflation, unemployment, high food prices and deteriorating living conditions.
In a statement issued on Thursday by its National Publicity Secretary, Bolaji Abdullahi, the ADC accused the administration of relying heavily on borrowing without corresponding improvements in the economy or the welfare of ordinary Nigerians.
According to Abdullahi, the government’s borrowing pattern reflects an unsustainable economic model where new loans are allegedly used to offset old debts and address fiscal shortfalls.
“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,” he said.
The party questioned why living conditions have continued to worsen despite repeated borrowing by the Federal 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?” Abdullahi added.
The ADC maintained that despite the country’s increasing debt profile, there has been little improvement in critical sectors of the economy.
It noted that food prices remain high, electricity tariffs continue to rise, the naira is under pressure, and businesses across the country are struggling to survive.
“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 statement said.
The opposition party also expressed concern over Nigeria’s debt servicing obligations, citing projections that the country could spend over N15 trillion on debt servicing in 2026 alone.
According to Abdullahi, funds that should ordinarily be invested in infrastructure, healthcare, education, security, agriculture and job creation risk being diverted to loan repayments.
He further criticised the government’s economic reforms, including fuel subsidy removal, naira devaluation and increased electricity tariffs, arguing that Nigerians have yet to see the promised economic recovery tied to those measures.
“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 ADC said.
The party also accused the National Assembly of failing to properly scrutinise borrowing requests from the executive arm of government.
Warning against what it described as excessive borrowing, the ADC said future generations risk inheriting the consequences of the country’s rising debt exposure.
“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,” Abdullahi stated.
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