Edo State Governor Godwin Obaseki has painted a dire picture of Nigeria’s financial situation, describing the country as “technically bankrupt.”
In a candid interview on Channels Television’s Politics Today, Obaseki emphasized that Nigeria’s expenditure exceeds its earnings, and the government’s spending habits aren’t decreasing.
“Nigeria is technically bankrupt. And I mean it,” Obaseki stated. “When you are bankrupt anywhere in the world, like in the United States, you file for what they call Chapter Eleven. You restructure your affairs so that you can reorganize and meet your obligations. Nigeria is not restructuring in that sense; it still behaves as if it had money like it used to.”
Obaseki explained that Nigeria’s financial struggles are compounded by the Federal Government’s outdated and centralized approach to managing resources.
“It (Nigeria) has been in trouble for a while. I won’t say insolvent, but technically so, in the sense that we don’t have enough to cover our expenditure, we are not reducing our expenditure, and we are not earning more,” he said.
The governor cited the example of Edo State’s 147 oil wells, only 53 of which are producing, highlighting the inefficiencies of central management.
“First, the Federal Government does not have the capacity to manage the economy at the scale and in the way it is currently doing. You’re producing 1.3 million barrels of oil, right? Because you are trying to do it centrally. We have 147 oil wells in Edo, and only 53 or fewer are producing.”
Obaseki stressed that individual states must be empowered to capitalize on their economic opportunities and contribute to the central government.
“Unless you create a new design that allows the individual states to take advantage of the economic opportunities they have, stressing the assets of this country and paying what they need to pay to the central government, the federal government cannot sit and try to micromanage the country and its assets. It has shown that it cannot. It doesn’t have the capacity to do so.”
The governor also expressed his belief that the Federal Government was stuck in the past, stating that the current structure of the country was outdated and that a new structure was needed to effectively manage the economy.
“I think for me, it’s like this federal government is stuck, and stuck in the past. Because you cannot resolve a malignant problem using the same tools you have used over the years.”
Obaseki attributed the government’s inability to effect change to a lack of courage in decision-making.
“It’s not that the people there are not smart; it’s not that they’re stupid. It’s more that they just don’t have the courage to make the decisions they need to make.”
He reiterated that Nigeria’s challenges are structural, emphasizing the need for a new approach.
“The problem with Nigeria today is structural. The structure we have is expired; it’s outdated. We need a new structure to run the economy of the state. If it doesn’t happen, we are not going anywhere.”
