ADC Blasts FG Over Fresh $1.25bn Loan, Accuses Tinubu Government of Running ‘Ponzi Economy’

The African Democratic Congress (ADC) has criticised President Bola Tinubu’s administration over its plan to secure a fresh $1.25 billion World Bank loan, describing Nigeria’s economic management as a “Ponzi economy” driven by continuous borrowing and rising debt.

In a statement issued on Thursday by its National Publicity Secretary, Bolaji Abdullahi, the opposition party said the move adds to Nigeria’s growing debt burden, which it estimated at about N159.28 trillion, amid worsening economic hardship.

The ADC argued that despite repeated borrowing, there has been no significant improvement in the lives of Nigerians, as inflation, unemployment, food prices and business closures continue to rise.

“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.

The party questioned the effectiveness of the government’s borrowing strategy, asking why Nigerians are becoming poorer despite trillions of naira in loans secured in recent years.

According to the ADC, key economic indicators such as electricity tariffs, exchange rates and food prices have continued to worsen, while businesses struggle to survive under inflationary pressure.

The party also warned that debt servicing obligations could further strain public finances, noting that President Tinubu has projected about $11.6 billion (over N15 trillion) for debt servicing in 2026.

It argued that such spending would divert funds away from critical sectors like education, healthcare, agriculture, infrastructure and job creation.

Abdullahi also criticised the National Assembly, accusing lawmakers of failing in their oversight duties by approving large-scale borrowing requests with little resistance or scrutiny.

“Nigeria cannot continue mortgaging the future of unborn generations simply to keep the current administration politically afloat,” he said.

The ADC maintained that economic reforms introduced by the government have instead worsened living conditions for citizens, despite earlier promises of long-term recovery following fuel subsidy removal and naira devaluation.

It added that Nigerians are already bearing the consequences through hunger, unemployment, inflation and widespread economic distress.