By Charles Igbo
The storm over the damning allegation made by the Governor of Edo State, Godwin Obaseki that the Federal Government printed the sum of N60 billion to breach the shortfall in the March Federal Allocation is far from over.
Obaseki ruffled not a few feathers when he revealed while addressing the State’s Transition Committee Stakeholders when he raised an alarm over the economy of the country, disclosing that to be able to give States the March Federal Allocation, the CBN had to print money to the tune of N60 billion to breach the difference.
He said: ” Everywhere else Governments rely on the people to produce taxes, and that is what they use to run the Local Government, States and the Federation.
“But with the way we run Nigeria, the country can go to sleep. At the end of the month, we just go to Abuja, collect money, and we come back to spend. We are in trouble, huge financial trouble”
But the Federal Government denied the allegation, insisting that no such thing happened. Commenting on that, the Minister for Finance, Budget and Planning, Mrs Zainab Ahmad, dismissed Obaseki’s allegation as sad, and a lie.
She said: “What we distribute at FAAC is revenue that is generated, and in fact, the distribution of the revenue is public information. We publish revenue generated by FIRS, the Customs and the NNPC, and we distribute at FAAC. So it is not true to say we printed money to distribute at FAAC. It is not true.”
But Obaseki stuck to his allegation, saying Nigeria has become an ostrich, prompting the CBN Governor, Emefiele, to say there was nothing wrong in the CBN printing money since it was their business to do so.”
Not a few Nigerians, were alarmed, saying that Nigeria was gradually going the Zimbabwean way, and asked for the sack of Minister Ahmed. And so did the PDD which, also, prompted the APC to accuse PDP of bad faith, insisting there was no big deal in PDP’s allegations and alarm.
However, the PDP Governors’ Forum has backed Obaseki, decrying the attack against him, saying he only advised the FG as a patriot.
In a statement signed by the Forum’s Director General, CID Maduabum, the Forum said it was alarmed by the partisan slant Obaseki’s advice has taken.
Following the full text of the Forum’s statement titled;
Governor Obaseki Merely Offered A Patriotic Advise
“The PDP Governors Forum is alarmed at the partisan slant a patriotic advise to the Federal Government by His Excellency, Governor Godwin Obaseki , on its monetary policies has assumed.
“2 It is unhelpful for the Progressive Governors Forum to join the fray in the manner it did by its recent statement attacking the bona fides of Governor Obaseki who merely warned the monetary authorities about the danger of uncontrolled use of Ways and Means, that is, the printing of Naira, to support government’s expenditure.
“3. Governor Obaseki has a background in economics and finance and is a very responsible Governor who talks in a measured way . His advise, which by the way has been corroborated by none other than the Governor of the CBN himself, and the international ratings agency FITCH , should be heeded rather than being crucified for sounding a note of caution.
“4. No doubt the Federal government has been supporting the States in the area of agriculture, budget, refund of Federal Government executed projects by States and a few other areas of intervention. Is CBN trying to be vindictive and vengeful by recalling its loans to the States because of an informed advise by a Governor?. It is unfortunate that governance has plummeted to this level.
“5. The Federal government should plug financial leakages in the system and curb wasteful expenditure of billions of Naira on projects that can be executed by the private sector and save a lot of money in the process, thereby relying less on Ways and Means by the CBN , which brings pressure on the Naira with its inflationary consequences. Inflation in Nigeria is currently at 18.2 % , the highest in recent years. We should all be concerned to find ways of steming the tide.
“6. We are all involved in the urgent task of rescuing the economy of Nigeria and nobody should indeed play the OSTRICH.”
On Sunday, Rivers State Governor, Nyesom Wike, joined the fray. He backed Obaseki.
Speaking to Reporters in Abuja, he said: “Obaseki was in APC, so he understands them. So, Obaseki couldn’t have come from the blues to say they printed N60 billion. He knows them.”
