Nigeria drifting into ‘Ponzi economy’, ADC tells Tinubu govt

The African Democratic Congress (ADC) has criticised the Federal Government over plans to secure another $1.25 billion loan from the World Bank, describing the Tinubu administration’s economic management as a “Ponzi economy” driven by continuous borrowing.

The opposition party said the fresh borrowing move had intensified worries over Nigeria’s mounting debt burden, which it said now stands at about N159.28 trillion, while millions of citizens continue to grapple with inflation, unemployment, high food prices and worsening living conditions.

In a statement issued on Thursday, ADC National Publicity Secretary, Bolaji Abdullahi, argued that despite repeated borrowing, ordinary Nigerians had seen little improvement in their standard of living.

“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 added: “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 party maintained that the country’s rising debt profile had not translated into meaningful development 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.

“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 about the Federal Government’s projected debt servicing costs for 2026, warning that loan repayments could consume funds needed for infrastructure and social services.

Abdullahi said: “It is noteworthy that President Tinubu himself has declared that Nigeria will spend about $11.6 billion, over N15 trillion, on debt servicing alone in 2026.

“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 ADC further accused the administration of repeatedly introducing new programmes and labels to justify additional borrowing.

“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,” Abdullahi stated.

The opposition party recalled that the government had defended policies such as fuel subsidy removal, naira devaluation and electricity tariff increases as necessary sacrifices for long-term economic recovery.

“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,” he said.

“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 also accused the National Assembly of failing to properly scrutinise borrowing requests from the executive arm of government.

“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,” Abdullahi said.

He warned that continued borrowing could place an unbearable burden on future generations.

“Nigeria cannot continue mortgaging the future of unborn generations simply to keep the current 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 added.