Obaseki raises alarm over Nigeria’s rising debt profile

Governor Godwin Obaseki of Edo state on Wednesday raised an alarm over the country’s rising debt profile, stressing that the situation is more critical now because of the huge amount borrowed to service the ailing economy.

The governor raised the alarm during a meeting with the Transition Committee members at the Government House in Benin City, the Edo State capital.

Obaseki also observed that the major oil giants like Chevron and Shell no longer invest so much oil as was obtainable in the past.

The investment banker further noted  that Chevron is now one of the world’s investors in alternative fuel, just as he disclosed that Shell intends to pull out of Nigeria.

According to him, “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.

“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”, he added.