The African Democratic Congress (ADC) has criticised the administration of President Bola Ahmed Tinubu over its planned move to secure an additional $1.25 billion loan from the World Bank, describing the government’s borrowing pattern as unsustainable.
In a statement released on Thursday, the opposition party said the proposed loan, coming shortly after the approval of fresh external borrowing by the National Assembly of Nigeria, raises serious concerns about the country’s growing debt burden and its impact on ordinary citizens.
According to the ADC, Nigeria’s public debt has climbed to about ₦159.28 trillion, yet many Nigerians continue to face worsening economic hardship, including rising food prices, higher electricity tariffs, unemployment, and business closures.
The party argued that despite repeated borrowing, there has been little visible improvement in critical sectors such as infrastructure, healthcare, education, electricity, and security.
It accused the Tinubu administration of operating what it described as a “Ponzi economy,” alleging that new loans are increasingly being used to service existing debts and cover fiscal shortfalls rather than drive long-term development.
The ADC also pointed to the government’s projected debt servicing bill for 2026, which President Tinubu recently put at about $11.6 billion, warning that such spending could significantly limit investments in key sectors of the economy.
The party further criticised the pace of external borrowing since Tinubu assumed office in May 2023, noting that several multibillion-dollar facilities had either been secured or pursued during the period.
According to the opposition party, economic reforms such as fuel subsidy removal, naira devaluation, and increased electricity tariffs were introduced with promises of long-term recovery, but have instead deepened the cost-of-living crisis for many Nigerians.
The ADC also faulted the National Assembly, accusing lawmakers of failing to provide sufficient scrutiny over repeated borrowing requests from the executive arm of government.
It warned that continued debt accumulation could place a heavy burden on future generations if not properly managed.
The party said Nigeria needs a stronger focus on production, industrialisation, agriculture, energy stability, and job creation rather than what it described as overdependence on external borrowing.