ADC Slams Tinubu Government, Labels Nigeria’s Economy a “Ponzi Scheme” Amid Fresh $1.25bn Loan Plan

The African Democratic Congress (African Democratic Congress) has strongly criticised the administration of President Bola Ahmed Tinubu, accusing it of running what it described as a “Ponzi-style economy” following the Federal Government’s request for an additional $1.25 billion loan from the World Bank amid Nigeria’s rising debt profile, now estimated at about ₦159.28 trillion.

In a detailed statement issued by the party’s National Publicity Secretary, Bolaji Abdullahi, the opposition party argued that the government’s increasing reliance on external and domestic borrowing reflects what it called a dangerous fiscal pattern that is deepening Nigeria’s economic vulnerability rather than resolving it.

The ADC said the continued accumulation of debt, without visible and measurable improvements in living standards, raises serious questions about the direction of the country’s economic management under the current administration.

“Borrowing without visible impact”

According to the party, successive loan approvals and disbursements have not translated into meaningful relief for ordinary Nigerians, who are instead facing worsening economic hardship.

“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 statement queried.

The party alleged that despite the rapid expansion of Nigeria’s public debt stock, citizens continue to grapple with escalating food prices, rising transportation costs, increasing unemployment, insecurity, inflationary pressures, and widespread business closures across different sectors of the economy.

It argued that the disconnect between borrowing and development outcomes suggests inefficiencies in the management and deployment of borrowed funds.

Criticism of economic reforms

The ADC also took aim at the Federal Government’s ongoing economic reforms, including the removal of fuel subsidy, the liberalisation of the foreign exchange market, and adjustments in electricity tariffs.

While acknowledging that reforms are often necessary in economic restructuring, the party insisted that the implementation of these policies has inflicted severe hardship on Nigerians without providing adequate social or economic cushioning.

It claimed that the cost-of-living crisis has worsened under the reforms, with household incomes stretched, small businesses struggling to survive, and purchasing power significantly weakened across the country.

According to the party, these policy decisions, combined with rising debt obligations, have placed additional pressure on citizens already dealing with economic uncertainty.

“Ponzi economy” allegation

The opposition party further escalated its criticism by describing the current fiscal approach as a “Ponzi economy,” alleging that the government is increasingly relying on new borrowing to service existing debt obligations and fund recurrent expenditure.

“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 added.

The party maintained that this cycle of borrowing without corresponding productivity gains is unsustainable and poses long-term risks to Nigeria’s economic stability, credit rating, and future revenue allocation.

Rising debt servicing concerns

The ADC also raised alarm over projections that Nigeria could spend about $11.6 billion equivalent to over ₦15 trillion on debt servicing in 2026 alone.

It warned that such a high debt servicing burden would significantly constrain government spending on critical sectors such as infrastructure, healthcare, education, agriculture, power, and job creation.

According to the party, if a large portion of national revenue continues to go into debt repayment, development projects will suffer stagnation, and social investment will be severely reduced.

Call for legislative oversight

The opposition party also criticised the National Assembly of Nigeria (National Assembly of Nigeria), accusing lawmakers of failing in their constitutional responsibility of providing adequate oversight over external borrowing requests.

It alleged that many of the loan approvals passed through the legislature without sufficient scrutiny of terms, repayment conditions, or long-term economic implications for the country.

The ADC argued that stronger legislative accountability is needed to ensure that borrowing aligns with national development priorities and does not further deepen Nigeria’s debt vulnerabilities.

Broader economic warning

The party concluded by warning that unless urgent steps are taken to restructure fiscal policy, improve transparency in borrowing, and ensure productive use of funds, Nigeria risks entering a prolonged debt trap that could undermine economic recovery efforts.

It urged the government to prioritise sustainable revenue generation, reduce wastage, and focus on policies that directly improve productivity and living standards rather than relying heavily on external loans.

The ADC reaffirmed its position that Nigeria’s current economic trajectory is unsustainable and called for a more disciplined and citizen-focused approach to governance and public finance management.