• MAN laments worsening capacity utilisation, rise in unsold goods
• ActionAid decries hardship, insecurity despite FG’s reforms
The African Democratic Congress (ADC) has raised the alarm over what it described as “fiscal vandalism” by the President Bola Tinubu-led administration, warning that Nigeria’s public debt could exceed N200 trillion before the end of 2025.
In the same vein, Manufacturers Association of Nigeria (MAN) urged the Central Bank of Nigeria (CBN) and other authorities concerned to, as a matter of urgency, review the 27.50 per cent Monetary Policy Rate (MPR).
Also, ActionAid Nigeria accused the Federal Government of failing to tackle deepening insecurity, worsening hunger and ballooning public debt, despite its touted recent economic reforms and symbolic gestures.
In a strongly worded statement signed by its National Publicity Secretary, Bolaji Abdullahi, yesterday, ADC demanded a full public audit of all loan agreements entered into by the All Progressives Congress (APC) since 2015, including interest rates, maturity terms, disbursement details and actual utilisation.
“Nigerians deserve full transparency. The time has come to halt this reckless borrowing and return to responsible governance. We call on President Tinubu to focus on meaningful economic reforms, productive investments, and prudent spending, instead of using loans to paper over failed policies,” the statement added.
It condemned the recent approval by the National Assembly of an additional $21 billion in foreign loans, accusing the ruling APC of plunging the nation deeper into a debt crisis without corresponding infrastructural or economic development.
According to the ADC, the Tinubu administration has outpaced the borrowing records of former President Muhammadu Buhari (now the late) by an alarming margin, with yearly debt accumulation said to be over 10 times higher than Buhari’s.
“Under Buhari, Nigeria borrowed an average of N4.7 trillion per year, which already raised national concern. But under Tinubu, the figure has ballooned to N49.8 trillion yearly,” the statement noted. “In just two years, this government has borrowed more than 10 times what Buhari did in the same period.”
Speaking on behalf of local manufacturers in the country, the Director-General, MAN, Segun Ajayi-Kadir, noted that the high MPR was surging the cost of borrowing, as the average lending rate to manufacturers stood at over 35 per cent.
He noted that this rate had trickle-down effects on production cost, impacting prices of finished products, capacity utilisation, inventory of unsold goods and competitiveness negatively.
In 2024 alone, he revealed that capacity utilisation stood at 57 per cent while the inventory of unsold goods rose to N2,140 billion from N1,141.33 billion recorded in 2023. These impact points, he said, combined to create uncertainty, disrupt production and investment plans.
The Monetary Policy Committee (MPC) of the CBN met recently to review recent economic and financial developments and maintained MPR at 27.50 per cent, asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio (CRR) for Deposit Money Banks (DMBs) at 50 per cent and 16 per cent for Merchant Banks and the liquidity ratio at 30 per cent.
Segun-Kadir noted that the MPC’s decision revealed that the contractionary monetary stance was still maintained, just as the persistent increase in the rate over the years has impacted the real sector negatively.
At a briefing in Abuja, following its meeting at the weekend, ActionAid General Assembly commended a few policies of the Tinubu administration, including the signing of the Tax Reform Act, a reported increase in Gross Domestic Product (GDP) figures, and the declaration of an emergency on food security.
It, however, noted that the milestones “have not translated into tangible relief” for ordinary Nigerians.Convener of the General Assembly, Dr Steve Onya, noted that despite the declaration of emergency in food security, there had been no significant change in plans, budgets or actions within the sector that would meaningfully change the situation.
The Assembly further raised concern over Tinubu’s choice to mark his two years in office with a London press briefing, amid nationwide protests, thereby showing an administration increasingly detached from the suffering at home.
It added that as Nigeria marked 26 years of democracy, the fanfare felt hollow as “what remains is democracy in name, eroding in practice,” with citizens bearing the brunt in lost lives, livelihoods and dignity.
Following the review, ActionAid called on the Federal Government to urgently reform the national security architecture to end widespread violence, including herder attacks, military airstrikes on civilians, and the suppression of protests.
