The African Democratic Congress (ADC) has criticised the administration of President Bola Tinubu over plans to secure a fresh $1.25 billion World Bank loan, describing Nigeria’s economic management as a “Ponzi economy.”
In a statement issued by its National Publicity Secretary, Bolaji Abdullahi, the party argued that the move comes at a time Nigeria’s public debt has risen to about N159.28 trillion, while citizens continue to face worsening living conditions.
According to the ADC, the government has continued to rely heavily on borrowing without corresponding improvements in key sectors such as power, security, education, and employment.
The party said the situation reflects a system where new loans are used to manage old obligations rather than drive development, adding that ordinary Nigerians are bearing the consequences through inflation, unemployment, and rising cost of living.
It questioned the effectiveness of the government’s economic reforms, noting that despite subsidy removal, naira devaluation, and tariff increases, citizens have not experienced meaningful relief.
The ADC also expressed concern over projected debt servicing obligations, warning that a large portion of national revenue may continue to go into repayment rather than infrastructure and social development.
It further criticised the National Assembly for allegedly failing to provide adequate oversight on borrowing requests, describing it as a weak check on executive decisions.
The party warned that continued borrowing without visible impact could deepen economic hardship and place a heavier burden on future generations.
Meanwhile, the Federal Government has not formally responded to the ADC’s latest “Ponzi economy” allegation as of the time of reporting.