… Says Nigerians are paying price of ‘ponzi economy’
African Democratic Congress (ADC) has condemned the Federal Government’s move to secure another $1.25 billion loan from the World Bank, describing the Tinubu administration’s borrowing pattern as dangerous and unsustainable.
In a statement issued by the party’s National Publicity Secretary, Bolaji Abdullahi, the opposition ADC expressed concern over what it called the continuous accumulation of debt without visible improvement in the living conditions of Nigerians.
The opposition party said the latest loan request came only weeks after the National Assembly approved fresh external borrowings worth billions of dollars.
According to the ADC, Nigerians deserve answers as the country’s debt profile continues to rise while poverty and economic hardship worsen across the nation.
“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 read.
The party noted that Nigeria’s public debt has climbed to about N159.28 trillion, yet citizens continue to battle rising food prices, high electricity tariffs, naira depreciation, unemployment, and worsening insecurity.
It added that many families are struggling to survive as businesses shut down under the pressure of inflation and harsh economic realities.
“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,” Abdullahi stated.
The party also referenced President Bola Ahmed Tinubu’s disclosure that Nigeria would spend about $11.6 billion, estimated at over N15 trillion, on debt servicing in 2026.
“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 criticised the pace of borrowing under the current administration, alleging that several World Bank facilities and external loans have been pursued since Tinubu assumed office in May 2023.
The party accused the government of hiding behind policy programmes and acronyms to justify continuous borrowing.
“Each time they want to borrow money, this government invents a new acronym. From ARMOR to RESET, HOPE, or SPIN, these are merely different labels for the same pretext to continue borrowing without any recourse to measurable impacts on the lives of Nigerians,” Abdullahi said.
The ADC argued that despite the removal of fuel subsidy, naira devaluation, increased electricity tariffs, and other economic reforms introduced by the administration, Nigerians have continued to experience severe hardship.
“The government removed fuel subsidy, devalued the Naira, increased electricity tariffs, and imposed painful economic policies on citizens, promising that temporary sacrifice would lead to long-term recovery. Instead, Nigerians have continued to suffer one of the worst cost-of-living crises in recent history, while the government continues to pile on more debts,” the statement said.
The party maintained that responsible borrowing should translate into tangible economic growth, improved infrastructure, stable electricity, job creation, and support for local industries.
“A serious government borrows to build industries, stabilize 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 ADC stated.
The opposition party also faulted the National Assembly, accusing lawmakers of failing in their oversight responsibilities.
“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 added.
The ADC warned that continued borrowing without corresponding economic gains could place future generations under severe financial pressure.
“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,” Abdullahi said.
The party insisted that Nigeria needs leadership focused on industrialisation, agriculture, security, stable electricity supply, and support for local businesses rather than what it described as excessive dependence on loans.
SOURCE: National Accord Newspaper