ADC Accuses Federal Government of Running a Ponzi Economy Amid Fresh Loan

By Luminous Jannamike, ABUJA

The African Democratic Congress (ADC) criticized President Bola Tinubu’s administration yesterday, labeling it a “Ponzi economy” after the federal government sought an additional $1.25 billion World Bank loan, despite Nigeria’s public debt now estimated at roughly N159.28 trillion.

The opposition party argued that the new borrowing intensifies worries about the country’s debt exposure while millions of Nigerians face rising food prices, inflation, unemployment, business failures, and deteriorating living conditions—almost two years after the government rolled out sweeping economic reforms.

ADC’s National Publicity Secretary, Bolaji Abdullahi, said the government’s continued heavy borrowing has not translated into visible improvements for ordinary citizens.

Abdullahi stated, “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?” he added.

According to the ADC, the rising debt profile has not produced noticeable gains in critical sectors or eased the economic pressure on households and businesses nationwide.

It added, “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 expressed concern over the federal government’s projected debt‑servicing obligations for 2026, warning that development resources could be absorbed by loan repayments.

Abdullahi noted, “It is noteworthy that President 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.”

He continued, “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 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.”

“Nigeria cannot continue mortgaging the future of unborn generations simply to keep the current 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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