The African Democratic Congress (ADC) has criticised the Federal Government over Nigeria’s rising debt profile, accusing President Bola Tinubu’s administration of operating what it described as a “Ponzi economy” driven by continuous borrowing.
The opposition party reacted to the Federal Government’s move to seek an additional $1.25 billion loan from the World Bank, coming weeks after the National Assembly approved fresh external borrowing requests worth billions of dollars.
In a statement issued on Thursday by its National Publicity Secretary, Bolaji Abdullahi, the ADC expressed concern over the country’s growing debt burden, warning that the increasing dependence on loans was worsening economic hardship for Nigerians.
According to Abdullahi, Nigeria’s total public debt has risen to about N159.28 trillion amid rising inflation, unemployment, insecurity and soaring living costs.
“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?”.
He further stated that food prices, electricity tariffs and the cost of living continued to rise while the naira remained weak, businesses struggled and millions of young Nigerians remained unemployed.
“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 party also raised concerns over the growing cost of debt servicing, noting that the Federal Government projected spending about $11.6 billion — estimated at over N15 trillion — on debt servicing in 2026 alone.
The ADC equally faulted the National Assembly, accusing lawmakers of failing to properly scrutinise the government’s borrowing requests.
“The National Assembly, which should serve as checks on executive excesses, has been reduced to a mere rubber stamp, approving massive borrowing requests with little resistance or serious public scrutiny.
Since assuming office in May 2023, President Tinubu’s administration has introduced several economic reforms aimed at stabilising public finances and attracting investment, including the removal of fuel subsidy and the unification of the foreign exchange market.
While the government has defended its borrowing strategy as necessary for infrastructure development, social protection and economic reforms, critics argue that the rising debt profile has not translated into improved living conditions for citizens.
Data from the Debt Management Office showed that Nigeria’s debt stock increased significantly following the devaluation of the naira, which raised the local currency value of external debts.
The ADC warned that continued borrowing without corresponding economic growth could further deepen Nigeria’s fiscal challenges and worsen hardship nationwide.
