ADC accuses Tinubu Govt of running “Ponzi Economy” over fresh $1.25bn loan request

The African Democratic Congress, ADC, has slammed the Tinubu administration for seeking another $1.25 billion World Bank loan, accusing it of running a “Ponzi economy.”

In a statement Thursday, ADC National Publicity Secretary Mallam Bolaji Abdullahi said the government was borrowing new money to service old debts while Nigerians face rising food prices, unemployment, insecurity, and inflation.

“Nigerians must ask a simple question: if this government keeps borrowing trillions every few months, why are Nigerians getting poorer, and why is life getting harder?” Abdullahi said.

He noted that Nigeria’s total public debt now stands at about N159.28 trillion, yet electricity tariffs are rising, the naira remains weak, businesses are shutting down, and youth unemployment persists.

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The ADC pointed to President Tinubu’s disclosure that Nigeria will spend $11.6 billion, over N15 trillion, on debt servicing in 2026 alone. “Trillions that should have gone into roads, hospitals, schools, and job creation will instead go to creditors,” the statement said.

The party criticized the pace of borrowing since May 2023, saying each loan comes with a new acronym but no clear impact on Nigerians’ daily lives. It argued that fuel subsidy removal, naira devaluation, and higher electricity tariffs were sold as short-term pain for long-term gain, but the cost-of-living crisis has only worsened.

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“A serious government borrows to build industries, stabilize power, and create jobs,” Abdullahi said. “After all this borrowing, Nigerians cannot point to any measurable improvement that matches the scale of the debt being accumulated in their name.”