The African Democratic Congress has criticised the Federal Government over Nigeria’s rising debt profile, accusing the administration of President Bola Tinubu of running what it described as a “Ponzi economy” sustained by continuous borrowing.
The opposition party’s reaction followed the Federal Government’s move to seek an additional $1.25bn loan from the World Bank, weeks after the National Assembly approved fresh external borrowing requests running into billions of dollars.
In a statement issued on Thursday by its National Publicity Secretary, Bolaji Abdullahi, the ADC said the country’s debt burden had become alarming, warning that the growing dependence on loans was worsening economic hardship for ordinary Nigerians.
According to him, Nigeria’s total public debt has climbed to about N159.28tn, while inflation, unemployment, insecurity and cost of living continue to rise across the country.
Abdullahi said, “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?
“Today, food prices continue to rise daily, electricity tariffs are increasing, the naira remains weak, businesses are shutting down, insecurity is spreading, and millions of young Nigerians remain 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 expressed concern over the growing cost of debt servicing, noting that President Tinubu had projected that Nigeria would spend about $11.6bn, estimated at over N15tn, on debt servicing in 2026 alone.
“In simple terms, trillions of naira that should have gone into roads, hospitals, schools, electricity, security, agriculture and job creation will instead go into paying creditors and servicing old loans,” the statement added.
The ADC further alleged that the government is failing to translate borrowings into visible improvements in the lives of citizens.
“A serious government borrows to build industries, stabilise power, create jobs, expand exports, improve transportation and grow the economy in ways that citizens can actually feel.
“But after all this borrowing, Nigerians cannot point to any measurable improvement in their daily lives that matches the scale of the debt being accumulated in their name,” the statement read in part.
The party also faulted the National Assembly for what it described as its failure to subject borrowing requests to rigorous scrutiny.
“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,” the statement said.
Since assuming office in May 2023, President Tinubu’s administration has embarked on a series of economic reforms aimed at stabilising public finances and attracting investment into the economy. Among the major policy decisions were the removal of fuel subsidy and the unification of the foreign exchange market, both of which triggered sharp increases in the prices of goods and services.
The government has defended its borrowing plans, insisting that many of the loans are tied to infrastructure, social protection and economic reform programmes designed to stimulate growth and cushion the effects of ongoing reforms.
However, Nigeria’s public debt has continued to rise significantly in the last two years, driven by fresh domestic and external borrowings, exchange rate depreciation and increasing fiscal deficits.
Data released by the Debt Management Office showed that the country’s debt stock rose sharply following the devaluation of the naira, which increased the naira value of external debts.
The ADC warned that continued borrowing without corresponding economic gains could worsen the nation’s fiscal crisis and deepen hardship among citizens.
“Nigeria cannot continue mortgaging the future of unborn generations simply to keep the present administration politically afloat.
“At some point, somebody will pay for all this borrowing, and sadly, ordinary Nigerians are already paying through hunger, inflation, unemployment, business closures and a collapsing standard of living,” the ADC publicity scribe added.