ADC criticises Tinubu government over proposed $1.25bn World Bank loan, warning of rising debt burden and worsening economic hardship in Nigeria
The African Democratic Congress has criticised the Federal Government over plans to secure a fresh $1.25 billion loan from the World Bank, describing the economic direction of the Tinubu administration as a “Ponzi economy” driven by continuous borrowing in Abuja on Thursday.
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The party, through its National Publicity Secretary Bolaji Abdullahi, said the proposed loan raises further concerns about Nigeria’s rising debt profile, which it claimed has reached about N159.28 trillion amid worsening economic hardship.
The ADC argued that despite repeated borrowing, Nigerians have continued to face inflation, unemployment, high food prices and a deepening cost of living crisis.
It said the situation reflects what it described as a system where new loans are taken to service old debts without delivering meaningful improvements to 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,” Abdullahi said.
He questioned the impact of the borrowing spree on everyday Nigerians, insisting that living conditions have continued to deteriorate despite increased public debt.
According to the party, households are struggling with rising prices, businesses are closing, and unemployment remains high, while economic reforms have yet to deliver relief.
The ADC also expressed concern over projected debt servicing obligations, citing claims that Nigeria could spend about $11.6 billion, over N15 trillion, on debt repayments in 2026.
It warned that such expenditure could significantly reduce funds available for infrastructure, healthcare, education, agriculture and job creation.
The party further accused the Federal Government of repeatedly introducing new policy labels and programmes to justify additional borrowing, without measurable impact on development outcomes.
It argued that key economic reforms such as fuel subsidy removal, naira devaluation and electricity tariff increases have increased hardship rather than ease it.
The ADC also criticised the National Assembly, alleging that lawmakers have failed in their oversight role by approving large-scale borrowing requests without sufficient scrutiny.
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It warned that continued reliance on external loans could place a heavy burden on future generations, urging a rethink of fiscal strategy and economic priorities.
