ADC Knocks Tinubu Over Fresh $1.25bn World Bank Loan, Describes Economy as ‘Ponzi Scheme’

The African Democratic Congress (ADC) has criticised the Federal Government’s plan to secure a fresh $1.25 billion loan from the World Bank, questioning the rationale behind additional borrowing despite Nigeria’s growing debt burden.

In a statement issued by the party’s National Publicity Secretary, Bolaji Abdullahi, the ADC said the country’s rising debt profile, estimated at about ₦159.28 trillion, has failed to translate into improved living conditions for Nigerians.

The opposition party accused the administration of President Bola Tinubu of relying on fresh loans to service existing debts while citizens continue to struggle with inflation, unemployment, insecurity and worsening economic hardship.

According to the ADC, the current economic situation reflects what it described as a “Ponzi economy,” where the government continuously borrows to settle previous obligations without delivering tangible benefits to the people.

The party also faulted the National Assembly for allegedly approving repeated borrowing requests from the executive without thorough scrutiny or resistance.

Part of the statement read: “The ADC is deeply alarmed by the Tinubu administration’s latest move to seek another fresh $1.25 billion World Bank loan, coming barely weeks after the National Assembly approved another round of external borrowing worth billions of dollars.

“Nigerians must ask why the government keeps borrowing huge sums while citizens continue to face rising poverty and worsening living conditions.”

The party noted that despite the country’s increasing debt stock, food prices, electricity tariffs and inflation have continued to rise, while businesses shut down and millions of youths remain unemployed.

It further argued that debt servicing now consumes a significant portion of government revenue, leaving limited funds for critical sectors such as healthcare, education, infrastructure, agriculture and security.

The ADC stated that President Tinubu had already disclosed that Nigeria would spend about $11.6 billion, equivalent to over ₦15 trillion, on debt servicing in 2026 alone.

The party expressed concern over what it described as the rapid pace of borrowing since the Tinubu administration came into office in May 2023, alleging that several loan programmes introduced under different acronyms were simply channels for continued borrowing without visible impact on citizens’ welfare.

The opposition party also recalled that the government justified painful economic reforms, including fuel subsidy removal, naira devaluation and increased electricity tariffs, with promises of long-term recovery and economic growth.

However, the ADC argued that Nigerians are yet to see meaningful improvements despite the accumulation of new debts.

It maintained that responsible borrowing should be directed towards industrial growth, job creation, improved power supply, transportation and export expansion, adding that many Nigerians cannot identify clear economic gains that match the scale of the country’s borrowing.

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