‘Ponzi economy’: ADC blasts Tinubu’s fresh $1.25bn World Bank loan bid

Muhammed Abubakar, Reporting

THE African Democratic Congress (ADC) has accused the Bola Tinubu administration of running a “Ponzi economy”, after the Federal Government moved to secure another $1.25 billion loan from the World Bank – even as Nigeria’s public debt soars to approximately N159.28 trillion.

In a strongly worded statement issued by its National Publicity Secretary, Mallam Bolaji Abdullahi, the opposition party argued that the government is taking on new loans merely to service old debts, while ordinary Nigerians bear the brunt of soaring food prices, rising unemployment, worsening insecurity, business closures, and rampant inflation.

“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.

The party questioned why Nigerians are growing poorer despite repeated borrowing. “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?”

According to the ADC, 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 said.

The ADC pointed to President Tinubu’s own declaration that Nigeria would spend roughly $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 statement added.

The opposition party also criticised the speed and scale of borrowing since Mr Tinubu assumed office in May 2023, noting that the administration has pursued or secured multiple World Bank facilities and external loans running into several billion dollars.

“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 said.

The party recalled that the government had removed the fuel subsidy, devalued the naira, increased electricity tariffs, and imposed painful economic policies on citizens – all while promising that temporary sacrifice would lead to long-term recovery.

“Some of the loans are ostensibly obtained to cushion the impacts of these harsh policies. 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 argued.

A serious government, the party said, borrows to build industries, stabilise power, create jobs, expand exports, improve transportation, and grow the economy in ways that citizens can actually feel. “But after all this borrowing, Nigerians cannot point to any measurable improvement in their daily lives that matches the scale of the debt being accumulated in their name.”

The ADC also expressed concern that the National Assembly had been reduced to a “mere rubber stamp”, approving massive borrowing requests with little resistance or serious public scrutiny, even as debt servicing consumes an increasingly unsustainable portion of government revenue.

“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,” the statement concluded.

The party reiterated that what Nigeria needs instead is “the ADC’s leadership, which is focused on production, security, industrialisation, agriculture, stable electricity, support for local businesses, and real job creation.”

The Federal Government has yet to issue an official response to the ADC’s latest criticism.