Economy

$1.25bn Loan: Tinubu Govt Runnning ‘Ponzi Economy’ — ADC

ByTitilope Adako

PublishedMay 14, 2026

The African Democratic Congress (ADC) has criticised the administration of President Bola Tinubu over its plan to secure a fresh $1.25bn World Bank loan, describing the borrowing pattern as a “Ponzi economy” and accusing the government of worsening hardship for Nigerians.

The party said it was concerned about the continued reliance on external loans despite rising economic challenges across the country.

In a statement issued on Thursday by its spokesperson, Bolaji Abdullahi, the ADC said it was “deeply alarmed” by the latest borrowing request, noting that it came barely weeks after another round of external loans was approved by the National Assembly.

The party questioned the impact of the borrowing spree on citizens’ welfare.

“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 ADC said Nigeria’s total public debt has risen to about N159.28 trillion, while living conditions continue to deteriorate nationwide.

It said, “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.”

It accused the government of pursuing an unsustainable debt strategy, insisting that fresh loans are being used to service old obligations.

The ADC 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.”

It also referenced President Tinubu’s projection that Nigeria would spend heavily on debt servicing in 2026.

The statement noted, “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.”

The ADC further criticised what it described as repeated rebranding of borrowing programmes by the administration.

It said, “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 also faulted the economic reforms introduced by the administration.

It stated, “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 argued that responsible borrowing should focus on productive investments that improve citizens’ lives.

It said, “A serious government borrows to build industries, stabilise power, create jobs, expand exports, improve transportation, and grow the economy in ways that citizens can actually feel.

“But after all this borrowing, Nigerians cannot point to any measurable improvement in their daily lives that matches the scale of the debt being accumulated in their name.”

The party also criticised the National Assembly for approving borrowing requests without sufficient scrutiny.

It said, “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 warned that rising debt levels were worsening hardship across the country and undermining the future of citizens.

It said Nigeria needed a new policy direction focused on “production, security, industrialisation, agriculture, stable electricity, support for local businesses, and real job creation.”

Titilope Adako

Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.