Debt Accumulation: Tinubu Running Ponzi Economy, Says ADC

The African Democratic Congress (ADC) has accused the administration of Bola Ahmed Tinubu of operating what it described as a “Ponzi economy” following the Federal Government’s move to seek an additional $1.25 billion loan from the World Bank amid Nigeria’s growing debt burden estimated at about N159.28 trillion.

In a statement issued by the party’s National Publicity Secretary, Bolaji Abdullahi, the ADC alleged that the government was relying on fresh borrowing to service existing debts while Nigerians continue to grapple with worsening economic conditions, including rising food prices, unemployment, insecurity, inflation, and business closures.

According to the party, the continuous accumulation of debt has failed to translate into visible improvements in the lives of citizens.

“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 said.

The ADC noted that despite the country’s mounting public debt profile, many Nigerians are struggling with the high cost of living, weak purchasing power, and unstable economic conditions.

The opposition party further criticized the Federal Government’s economic reforms, including the removal of fuel subsidy, the devaluation of the naira, and increases in electricity tariffs, arguing that the policies have imposed severe hardship on citizens without corresponding economic relief.

The party claimed that successive borrowing initiatives introduced under different policy names and programmes were ultimately aimed at sustaining what it described as unsustainable fiscal management.

“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 ADC also expressed concern over projections that Nigeria could spend about $11.6 billion, estimated at over N15 trillion, on debt servicing in 2026, warning that critical sectors such as infrastructure, healthcare, education, agriculture, power, and job creation risk being neglected due to rising debt obligations.

The party further accused the National Assembly of Nigeria of failing in its oversight responsibilities by approving what it described as massive external borrowing requests without adequate scrutiny.

According to the ADC, Nigeria risks “mortgaging the future of unborn generations” if the current borrowing trend continues unchecked.

The opposition party maintained that the country requires leadership focused on production, industrialization, agriculture, stable electricity supply, security, and support for local businesses rather than dependence on external borrowing.