Edo State Governor, Godwin Obaseki has raised the alarm over Nigeria’s financial trouble, particularly given the continued shrinking oil revenue, which made the federal government print about N60 billion to augment allocation shared to states in March.
Besides, Obaseki, who spoke at a programme in Benin, revealed that, by December this year, the country’s total borrowing would be in excess of 15 to 16 trillion.
“In another year or so, where will we find this money that we go to Abuja to share every month? Last month, we got FAAC for March. The federal government printed an additional 50 to 60 billion to top-up for us to share,” he said.
The governor believed, very soon, there would be no crude oil revenue, accruing to the national treasury for spending, with the dwindling fortunes of oil.
Emphasising that despite the prices of crude at the international market, the current fortunes of crude is only a mirage and the Nigerian economy could no longer rely on oil revenue. According to him, major oil producers like Shell and Chevron, which hitherto made huge financial commitment to oil production, are no longer investing as much, especially with Chevron heavily investing in alternative fuel and Shell pulling out of Nigeria.
He, therefore asked, where will the federal government find the oil revenue to share monthly as federal allocation among the three tiers of government?
“We say remove subsidy, they say no. This April, next week again, we will go to Abuja and share. By the end of this year, the total borrowing is going to be in excess of 15 to 16 trillion.
“My worry is that we will wake up one day like Argentina, the naira will be 1,000, 2,000 and will be moving because we don’t have money coming in. You are just borrowing, borrowing and borrowing without any means or idea of how to pay back.”
Obaseki pointed that the change in the world economy which is now affecting Nigeria, would be the major factor that will affect the country’s economy going forward.
The answer is right here. Listen. pic.twitter.com/uUZxsHmxsX
— 99% OPPRESSED (WIKILEAKS) (@Truthfully83) April 11, 2021
— Rothschild 🇺🇸 🇳🇬 (@timi_wakanda) April 10, 2021
PLEASE: Leave dirty politics & understand what Gov. Obaseki is saying
1. Buhari is not a magician
2. Our revenue from oil is expiring
3. Diversification must be intensified
4. Oil subsidy is unsustainable
5. OTHERWISE: One day Governors will go to Abuja & meet empty treasury pic.twitter.com/7Y1hCVSoRh
— Jack Obinyan (Mr Jack) 🇳🇬 (@JackObinyan) April 11, 2021
Many a times I don’t blame BABA for most of the things happening but I blame the ECONOMIC TEAM. As for me, they know nothing and that’s why things are going down like this
— DAMMY (@Dammylink) April 11, 2021
I heard this thing since last year, Nigeria is in deep debts and that’s why things got higher in price, and we are charged so many times in our bank account
— YourBabyBoiy (@YourBabyBoiy) April 11, 2021
FG is now monetizing at I&EW rate so that all of a sudden they have more naira for each dollar from oil windfall. The way we are going in this country is very scary because 17.33% won’t be the peak of this current uptrend in inflation rate. Ways and means is another issue.
— Olayinka Furniture Plug (@Olafurnitures) April 11, 2021