NPP Has Made Ghanaians Poorer -Eric Opoku

The Minister for Food and Agriculture, Eric Opoku, has strongly criticised the economic management of the New Patriotic Party (NPP) government, accusing them of plunging Ghanaians into deeper poverty, despite their claims of economic growth.

“Mr. Speaker, in 2016 when Ghana recorded a growth rate of 3.6%, food inflation was at 9.7%. Today, you claim to have achieved a growth rate of 5.7%, yet food inflation is above 23%. What does this mean? It means that you are making Ghanaians poorer and poorer. Rising food inflation pushes many into abject poverty.”

His remarks came during the debate on the 2025 Budget Statement and Economic Policy presented by Finance Minister Dr. Cassiel Ato Forson on Tuesday, March 18, 2025.

Speaking on the floor of Parliament, the Minister asserted that the NPP’s handling of the economy had led to increased food inflation, a ballooning national debt and deteriorating economic indicators that have made life unbearable for the average Ghanaian.

Mr Eric Opoku argued that the former ruling party’s economic policies had failed to improve the standard of living for Ghanaians. He pointed out that, although the NPP boasted about a 5.7% economic growth rate in 2024, this had not translated into real benefits for citizens.

The Agric Minister emphasised that food price hikes have severely affected ordinary citizens, with many struggling to afford basic meals.

Bank of Ghana’s Losses

Mr. Eric Opoku further lambasted the NPP government over its handling of the Bank of Ghana (BoG), citing unprecedented financial mismanagement.

He revealed that under the NDC government in 2016, the Bank of Ghana recorded a profit. However, since the NPP took office, the central bank had suffered massive losses.

“Mr. Speaker, in just one year, the Bank of Ghana recorded a loss of GHS16.8 billion – an amount equivalent to $5 billion.

“This is unprecedented in Ghana’s history and for the first time, this government borrowed almost GHS18 billion from the Bank of Ghana in just two years—2022 and 2023. Where did all that money go?” he questioned

He accused the government of reckless borrowing, leading to Ghana’s debt distress.

“In 2016, Ghana’s total debt was GHS120 billion. Today, in 2024, the debt has ballooned to over GHS741 billion. You have borrowed so much that Ghana can no longer issue bonds or access international financial markets. Investors have lost confidence in Ghana because of your recklessness,” he charged.

Debt Exchange Program

The Minister also criticized the former ruling party for worsening Ghana’s unemployment situation. He noted that in 2016, the unemployment rate stood at approximately 5.23%, but by 2024, it had soared to 14.7%.

“Mr. Speaker, while you are boasting about a 5.7% growth rate, millions of young people remain jobless. Your government’s incompetence has left thousands of graduates without hope,” he said.

He further slammed the NPP for introducing the Debt Exchange Program, which he described as a desperate attempt to defer Ghana’s debt burden to future governments.

“In 2016, there was no debt exchange program because we had a plan to manage our debt. You came into office, borrowed recklessly, and when it was time to pay, you had no money. That is why you had to go begging creditors to postpone debt payments,” he argued.

He disclosed that the NDC government, under the 2025 Budget, would have to pay GHS18.3 billion for postponed debt, GHS22 billion in 2026, and a staggering GHS58 billion in 2027.

“Altogether, because of your recklessness, Ghana will pay GHS150 billion in deferred debt over the next few years. And yet, you have the audacity to criticize our budget, which is aimed at resetting the economy,” he fumed.

The Minister for Food and Agriculture also highlighted the dire state of Ghana’s cocoa sector, attributing its decline to mismanagement by the NPP.  “Mr. Speaker, in 2016, cocoa production stood at 969,000 metric tonnes.

“Today, under the so-called 5.7% economic growth, cocoa production has dropped to around 530,000 metric tonnes. How can you claim success when one of our key industries is collapsing?” he questioned.

He further noted that Ghana’s cocoa debt, which was just GHS1 billion in 2016, had now skyrocketed to GHS32 billion.  “Of that amount, GHS9.7 billion is due for payment this year alone. How do you justify this mismanagement?” he asked.

Reset 

Mr. Eric Opoku stressed that the 2025 Budget was focused on resetting the economy by prioritizing agriculture as a tool for economic transformation. He outlined key initiatives under the ‘Agriculture for Economic Transformation Agenda’, which seeks to drive food self-sufficiency and reduce Ghana’s reliance on imports.

“We have introduced the Feed Ghana Program to ensure that every Ghanaian is fed from local sources. Our Vegetable Development Project will boost the production of tomatoes, onions, and peppers to cut down the $400 million we spend importing tomatoes from Burkina Faso and the $24 million on onions from Niger,” he explained.

Additionally, he announced plans for a “Poultry Farm-to-Table Project” to boost the local poultry industry and reduce Ghana’s dependency on imported chicken.

“Mr. Speaker, we must take agriculture seriously if we want to stabilize our economy. That is why this budget focuses on resetting the system and ensuring that Ghana becomes food-sufficient,” he added.

Digitalization

However, Member of Parliament for Tano North, Dr. Gideon Boako revealed that the economy had recorded a remarkable growth of GH¢1.2 trillion in nominal terms in 2024, and for the first time, this expansion was not driven by traditional sectors like cocoa, gold, or oil but by digitalization.

“Mr. Speaker, interestingly, when the Ghana Statistical Service reviewed the quarterly data and subsequently followed up with the Statistician’s presentation to Parliament, we got to know that this massive growth did not come from cocoa, gold, or oil. But guess what? This growth was fueled by data and SMS – that is, digitalization,” he stated.

Dr. Boako credited this shift to sustained digitalization efforts, particularly in the last eight years, spearheaded by former Vice President Dr. Mahamudu Bawumia.

“If there is anything magnificent that has happened to this economy in the last two or three decades, it is the economic diversification that has taken place as a result of the digitalization agenda,” he noted.

The MP stressed that the economy’s ability to sustain such growth indicates the need for further investment in digital infrastructure to solidify its position as a key economic driver.

Government’s Spending Priorities 

Despite acknowledging the country’s economic progress, Dr. Boako raised concerns about the government’s expenditure priorities in the 2025 budget. He noted that while the NDC Administration has been vocal about cost-cutting measures, its spending plans contradict this stance.

“Anybody would have thought that a government that decided to cut expenditure would spend less. But today, we see the government seeking to spend GH¢290 billion, compared to the GH¢250 billion spent in 2024,” he pointed out.

He questioned why, despite this increased budget, allocations for critical areas such as local government, roads, and rural electrification remain inadequate while spending on the Office of Government Machinery has skyrocketed.

“Budget is all about prioritization. Our people in the rural areas need roads. They need toilets. They need rural electrification. Why are we seeking to prioritise expenditure at the presidency and the Office of Government Machinery ahead of local development?” he asked.

Dr. Boako highlighted a striking increase in the budget for the Office of Government Machinery, which has ballooned from GH¢327 million in 2024 to GH¢2.7 billion in 2025.

“Mr. Speaker, this is shocking. In 2024, the ruling party complained so much about high expenditure at the Office of Government Machinery. But today, the same government is seeking to spend 2.7 billion cedis – almost ten times the previous amount!” he said.

He also challenged claims that the increase was due to additional agencies being placed under the Office of Government Machinery. Citing budgetary documents, he argued that the previous administration had more agencies under its purview, but still managed to keep costs significantly lower.

IMF Program 

Dr. Boako also addressed concerns about the Bank of Ghana’s negative equity position, explaining that its financial struggles stem from a 50% haircut it took as part of Ghana’s debt restructuring program under the International Monetary Fund (IMF) deal.

“Mr. Speaker, the Bank of Ghana did not seek taxpayers’ money to cover its losses. It acted as a loss absorber when the government needed to reduce the debt-to-GDP ratio. The majority of this debt originated from loans given to COCOBOD as far back as 2010,” he clarified.

He urged Parliament to take a critical look at how funds are being allocated to ensure that government spending reflects the needs of ordinary Ghanaians rather than being concentrated at the top.

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