By Olivia Isibor (AGENDAWATCHDOG) – According to the Edo State Governor, Godwin Obaseki, the country’s rising debt profile could spiral out of contron if care is not taken.
The governor Obaseki made this observation on Wednesday during a meeting with the Transition Committee members at the Government House in Benin City, the Edo State capital , noting that with dwindling investments in the oil industry by key players such as Chevron, which is now one of the world’s major investors in alternative fuel, and Shell, which intends to pull out of Nigeria, there might be no money for the states to share from the Federation Account a year from now.
“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.”