By John Owen Nwachukwu The National Secretary of the Coalition of United Political Parties, CUPP, High Chief Peter Ahmeh has said th...
By John Owen Nwachukwu
The National Secretary of the Coalition of United Political
Parties, CUPP, High Chief Peter Ahmeh has said the Nigerian economy is burdened
by public debt, as reflected in the consistent deficit budget and constant
borrowing.
He claimed that things were bad under Buhari but are now
worse under the current administration of President Bola Ahmed Tinubu.
Ameh, a former National Chairman of the Inter-Party Advisory
Council, IPAC, noted that despite promises by the Tinubu government, the
Nigerian economy continues to suffer under the weight of debt.
Chief Ameh highlighted that dwindling revenue and increasing
government expenditures have led to frequent borrowing.
“These continuous borrowing and the justifications provided
by the current administration for it is nothing but sophistry,” he said in a
statement on Thursday.
”The government may need to borrow money to stimulate
economic growth when a country has low domestic savings and a high current
account payment deficit, requiring funds from external sources.
He said there are two main reasons for external borrowing
which include to boost consumption or to finance the temporary balance of
payment deficits and structural reasons.
“However, the current administration, like past
administrations under President Buhari’s leadership, has significantly misused
the idea of borrowing, going against universal principles.
“In Nigeria, our continuous borrowing seems to be for the
political and financial benefits of the political class. Consequently, the
country remains in a stagnant state.
Under the pretext of borrowing for infrastructural
development, the current administration has enriched themselves and a select
few through questionable projects and procurements.
Former President Buhari left Nigeria with a debt burden of
about N77 trillion, which has now increased significantly under the current
administration in a year to about N121.67 trillion.
He said this has led to an economic crisis, with food
inflation rising to 40.87 percent in May from 25.28 percent in June as reported
by the National Bureau of Statistics, NBS.
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