Friday, May 3, 2024

No oil money again, FG printed N60bn to share in March: Obaseki

The Edo governor expressed his concern over the habitual borrowing system of the government.

• April 10, 2021
Edo governor Godwin Obaseki
Edo governor Godwin Obaseki [Photo credit: Premium Times]

Governor Godwin Obaseki of Edo has warned that there would soon be no crude oil revenue for Nigeria to spend, adding that the federal government had to print extra N60 billion for states to share in March.

The governor made this statement on Wednesday during a meeting with the state’s Transition Committee in Benin.

Mr Obaseki noted the Nigerian economy can no longer rely on global oil prices because major oil-producing companies are now investing in alternative sectors, Channels news reported.

The governor further expressed his concern over the habitual borrowing system of the government, he explained that by the end of the year that there would be additional N16 trillion debt owed by the Nigerian government.

He mentioned that the situation may cause a collapse in the economy of the country and the value of naira because there is no way of paying back borrowed loans.

“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.

“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.”

Speaking further, the governor explained that the people are concerned about the 2023 election while they keep blaming the president for the current state of the nation’s economy.

Also, the governor commended the effort of the Independent National Electoral Committee for adopting technology to bring a change to the voting system in the country so it will be difficult to rig election results.

“INEC itself had also begun its own process of change. They have been worried, scandalised by what happened in Kogi and Bayelsa and were trying to redeem themselves.

“So using technology, they made sure that as soon as you finish voting in the polling unit, that result was uploaded straight into a portal so they can see the pattern which makes it difficult to change results at the collation centers.’’

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