TheNewsGuru

Obaseki sparks nationwide controversy over claims FG printed N60bn to augment depleted March allocation

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by

Olaotan Falade
in , ,

Ever since Edo State Governor, Godwin Obaseki raised the alarm that Nigeria might collapse economically because of global shrinking oil revenue which happens to be the nation’s mainstay, Nigerians have continued to question the federal government fiscal policies.

TheNewsGuru.com, TNG reports that Governor Obaseki revealed that the federal government printed about N60 billion to augment the federation allocation shared with states and local governments in March.

Besides, Obaseki, during a meeting with the Transition Committee members at the Government House in Benin City, the Edo State capital during the week 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 was 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.

Reacting to the governor’s revelation, Nigerians took to their social media accounts to question the federal government sincerity in fixing the nation and making the economy buoyant to survive during challenging times.

See reactions below:

https://twitter.com/JackObinyan/status/1381180997149073410?s=20