$1.25bn World Bank Loan: Tinubu’s government running ‘ponzi economy’ — ADC

The African Democratic Congress has condemned the Federal Government’s move to seek another $1.25 billion World Bank loan, accusing the administration of President Bola Ahmed Tinubu of operating what it described as a “Ponzi economy.”

In a statement, the opposition party said it was deeply alarmed that the new loan request was coming barely weeks after the National Assembly approved fresh external borrowing running into billions of dollars.

The ADC questioned why Nigerians continue to face worsening economic hardship despite repeated borrowings by the government.

According to the party, Nigeria’s total public debt has now risen to about N159.28 trillion, while inflation, rising food prices, high electricity tariffs, naira depreciation and unemployment continue to affect millions of citizens.

“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,” the statement read.

The party also referenced Tinubu’s recent disclosure that Nigeria would spend about $11.6 billion on debt servicing in 2026, arguing that funds meant for infrastructure, healthcare, education, agriculture and job creation would instead be channelled into repaying creditors.

The ADC criticised what it described as the government’s continued reliance on foreign borrowing under different policy labels and economic programmes.

“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 party stated.

The opposition party further argued that despite painful reforms such as fuel subsidy removal, naira devaluation and electricity tariff hikes, Nigerians have not experienced the promised economic recovery.

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

According to the party, Nigeria needs leadership focused on industrialisation, agriculture, stable electricity, security, local production and job creation rather than increasing dependence on debt.

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