Opposition party says rising debt has deepened hardship without improving living conditions
The African Democratic Congress (ADC) has accused the administration of President Bola Ahmed Tinubu of operating what it described as a “Ponzi economy” after the Federal Government moved to secure an additional $1.25 billion loan from the World Bank.
In a statement issued on Thursday, the party argued that the latest borrowing plan has intensified concerns over Nigeria’s mounting public debt, estimated at about ₦159.28 trillion, amid worsening economic conditions across the country.
The statement, signed by the ADC’s National Publicity Secretary Bolaji Abdullahi, accused the government of relying on continuous borrowing without delivering measurable improvements in citizens’ welfare.
“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.
“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 opposition party said the country’s growing debt profile has failed to translate into visible gains in infrastructure, social welfare or economic stability.
According to the ADC, rising inflation, high electricity tariffs, a weakened naira, business closures and persistent insecurity continue to compound hardship for households and companies.
“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 statement said.
The party also raised concerns about Nigeria’s projected debt servicing obligations for 2026, warning that repayments could consume resources needed for development.
Abdullahi referenced earlier remarks by President Tinubu indicating that Nigeria could spend about $11.6 billion — estimated at more than ₦15 trillion — on debt servicing in 2026 alone.
“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 said.
The ADC further criticised the government’s economic reform measures, including the removal of fuel subsidies, naira devaluation and increases in electricity tariffs, arguing that the promised long-term recovery has yet to materialise for most Nigerians.
“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 party stated.
The opposition party also accused the National Assembly of Nigeria of failing to adequately scrutinise borrowing requests from the executive arm of government.
“The National Assembly, which should serve as checks on executive excesses, has been reduced to a mere rubber stamp,” the statement added.
Warning against what it described as the continued mortgaging of Nigeria’s future, the ADC argued that ordinary citizens are already bearing the consequences through rising hunger, unemployment and declining living standards.
“Nigeria cannot continue mortgaging the future of unborn generations simply to keep the present administration politically afloat,” Abdullahi said.
The statement reflects growing political debate over the government’s economic policies as Nigeria grapples with inflationary pressures, fiscal constraints and demands for broader social relief.
