$1.25 bn loan: Tinubu govt running ‘ponzi economy’ – ADC

The African Democratic Congress (ADC) has said the administration of President Bola Tinubu is operating what it described as a “Ponzi economy” following plans by the federal government to secure a fresh $1.25 billion loan from the World Bank amid the country’s growing debt burden.

In a statement issued on Wednesday by Bolaji Abdullahi, its National Publicity Secretary, the party said the government had continued borrowing heavily without corresponding improvement in the living conditions of Nigerians.

BusinessDay reports that the federal government has intensified discussions with the World Bank over a fresh $1.25bn loan aimed at supporting economic reforms, job creation among others.

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The proposed facility, tagged Nigeria Actions for Investment and Jobs Acceleration, has advanced to a critical stage in the World Bank’s approval process.

The loan is scheduled to be presented for approval on June 26, 2026, barely two months to the commencement of presidential and National Assembly campaigns on August 19, 2026, based on the revised timetable released by the Independent National Electoral Commission (INEC).

The ADC noted that Nigeria’s public debt had risen to about N159.28 trillion, while citizens continue to grapple with rising inflation, high food prices, unemployment, insecurity and business closures.

“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.

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The opposition party argued that the Tinubu administration was relying on fresh loans to service existing debts and finance fiscal gaps rather than investing in productive sectors capable of stimulating economic growth and improving living standards.

The party further criticised the National Assembly for allegedly approving borrowing requests without adequate scrutiny, warning that excessive debt servicing could deprive critical sectors such as healthcare, education, agriculture, infrastructure and security of needed funding.

The ADC maintained that Nigeria requires leadership focused on production, industrialisation, agriculture, stable electricity supply and job creation rather than continuous borrowing.