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.
