ADC slams FG over fresh loan, says Nigeria running on ‘Ponzi economy’

By Luminous Jannamike, ABUJA

The African Democratic Congress on Thursday accused President Bola Ahmed Tinubu’s administration of running what it described as a ‘Ponzi economy’ after the Federal Government moved to secure another $1.25 billion World Bank loan despite Nigeria’s growing public debt estimated at about N159.28 trillion.

The opposition party said the fresh loan request has further fuelled concerns over the country’s rising debt exposure at a time millions of Nigerians are struggling with soaring food prices, inflation, unemployment, business failures and worsening living conditions, nearly two years after the government introduced sweeping economic reforms.

The accusation was contained in a statement by Bolaji Abdullahi, the ADC’s National Publicity Secretary, who said the government had continued to borrow heavily without visible improvements in the lives of ordinary citizens.

Abdullahi said, “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.

“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 rising debt profile has failed to produce noticeable improvements in critical sectors or ease the economic pressure facing households and businesses across the country.

The party stated, “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 ADC also raised concerns over the Federal Government’s projected debt servicing obligations for 2026, warning that resources needed for development could be swallowed by loan repayments.

Abdullahi said, “It is noteworthy that President Bola 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.

“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,” the statement said.

The opposition party also said Nigerians were yet to recover from the effects of fuel subsidy removal, naira devaluation and increased electricity tariffs introduced under the current administration.

“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.

“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 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,” the ADC added.

Warning against what it described as the continued mortgaging of Nigeria’s future, the opposition party said ordinary citizens were already bearing the consequences of the country’s mounting debt burden.

“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,” Abdullahi said.

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