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FG printed N50bn to augment March revenue shortfall in Federation Account — governor

“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”

The Federal Government printed about N60 billion to augment allocation shared to states in March 2021, a state governor has revealed.

According to Edo Gov. Godwin Obaseki, the country’s distressed financial status coupled with the continued shrinking oil revenue necessitated the printing of currency by the Central Bank of Nigeria (CBN).

He disclosed that by December this year, the country’s total borrowing would be in excess of N15 to N16 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 spoke at a programme in Benin City.

Obaseki expressed the fear that there might be no crude oil revenue accruing into the nation’s treasury for spending with the dwindling oil fortunes.

Despite the prices of crude in the international market, the current fortunes of crude is only a mirage and the Nigerian economy could no longer rely on oil revenue, the governor said.

Obaseki pointed out that 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.

“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 said.

READ ALSO: Nigeria’s borrowing costs hit 37%

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Written by Per Second News

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