The African Democratic Congress(ADC) has criticised the administration of President Bola Ahmed Tinubu over its continued borrowing plans, accusing the Federal Government of operating what it described as a “Ponzi economy” amid Nigeria’s rising debt profile.
In a statement by the party’s National Publicity Secretary, Bolaji Abdullahi on Thursday, the ADC expressed concern over reports that the Federal Government is seeking an additional $1.25 billion loan from the World Bank, despite Nigeria’s total public debt standing at about N159.28 trillion.
The opposition party argued that the continued borrowing by the government had failed to improve the living conditions of Nigerians and instead increased the burden on citizens already facing economic hardship.
According to the statement, the growing debt profile raises serious questions about the effectiveness of the government’s economic policies.
“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 asked.
The ADC noted that despite the country’s rising debt profile, many Nigerians continue to grapple with high food prices, inflation, unemployment, insecurity and increasing costs of doing business.
“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 statement said.
The party further argued that the government was accumulating new debt largely to offset previous financial obligations.
“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,” it stated.
The party also referred to projections that Nigeria would spend approximately $11.6 billion on debt servicing in 2026, saying such expenditures could limit funding for critical sectors of the economy.
“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 criticised what it described as the pace and scale of borrowing under the current administration, claiming that different government initiatives were being used to justify additional loans.
“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,” the party said.
The opposition party also faulted the National Assembly, alleging that lawmakers had failed to provide adequate oversight on borrowing requests.
“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 said.
The ADC warned against what it described as mortgaging the future of future generations through excessive debt accumulation.
“Nigeria cannot continue mortgaging the future of unborn generations simply to keep the present administration politically afloat,” the party added.
The party maintained that the country needed policies focused on industrialisation, agriculture, security, local business support, stable electricity supply and job creation as pathways to economic growth.
