ADC faults fresh World Bank loan request, accuses Tinubu Govt of running ‘Ponzi Economy’

Politics

ABUJA, Nigeria (NPA) — The African Democratic Congress (ADC) has criticised the Federal Government’s planned fresh $1.25 billion World Bank loan request, accusing the administration of President Bola Ahmed Tinubu of plunging the country deeper into unsustainable debt without improving the living conditions of Nigerians.

In a statement issued by the party’s spokesperson, Bolaji Abdullahi, the ADC expressed concern over what it described as the continuous borrowing spree of the current administration despite worsening economic hardship across the country.

The opposition party said the latest loan move came barely weeks after the National Assembly approved another round of external borrowing worth several billions of dollars.

According to the ADC, Nigerians are increasingly burdened by rising inflation, high food prices, unemployment and business closures despite the growing debt profile of the country.

“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 said.

The party noted that Nigeria’s total public debt has risen to about N159.28 trillion, while many citizens continue to struggle with the rising cost of living, weak purchasing power and deteriorating economic conditions.

The ADC alleged that the Tinubu administration was operating what it termed a “Ponzi economy,” where new loans are constantly acquired to service existing debts and cover 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,” Abdullahi stated.

The party also referenced projections that Nigeria could spend about $11.6 billion, estimated at over N15 trillion, on debt servicing in 2026 alone.

According to the ADC, resources that should ordinarily be invested in roads, healthcare, education, electricity, agriculture and job creation are increasingly being channelled toward servicing debts.

The opposition party further criticised the pace of borrowing since Tinubu assumed office in May 2023, alleging that multiple external loan facilities had been pursued under different economic programmes without a corresponding impact on citizens’ welfare.

“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 measurable impact on the lives of Nigerians,” the statement added.

The ADC argued that despite major economic reforms such as fuel subsidy removal, naira devaluation and electricity tariff increases, Nigerians have continued to face severe economic hardship rather than the promised recovery.

It maintained that a responsible government should utilise borrowing to drive industrialisation, strengthen power supply, improve transportation, expand exports and create jobs capable of stimulating economic growth.

According to the party, Nigerians are yet to see visible improvements that justify the scale of debts accumulated by the current administration.

The ADC also accused the National Assembly of failing in its oversight responsibility by approving major borrowing requests without sufficient scrutiny or resistance.

“The National Assembly, which should serve as checks on executive excesses, has been reduced to a mere rubber stamp,” the party alleged.

It warned that continued borrowing could mortgage the future of younger generations and worsen the burden of inflation, unemployment and declining living standards already facing citizens.

The party said Nigeria requires leadership focused on production, security, industrialisation, agriculture, stable electricity supply, support for local businesses and sustainable job creation.