The Federal Government has described as untrue and sad claims by the Edo State governor, Godwin Obaseki, that it printed N60 billion to share amongst the 36 states as part of the March federal allocation.
Zainab Ahmed, minister of finance, budget and national planning, debunked Obaseki’s claim while responding to a question by State House Correspondents at the Presidential Villa, Abuja.
The media had reported the Edo State governor as expressing worry on Nigeria’s rising debt profile, saying the country is in ‘huge financial trouble’.
“When we got FAAC for March, the Federal Government printed additional N50 billion-N60 billion to top up for us to share. This April, we will go to Abuja and share. By the end of this year, our total borrowings are going to be within N15 trillion-N16 trillion,” Obaseki was quoted to have said.
But speaking shortly before the commencement of the Federal Executive Council (FEC) meeting presided over by Vice President Yemi Osinbajo on Wednesday, Ahmed explained that what is distributed at the monthly Federation Account Allocation Committee (FAAC) meetings were generated revenue from government institutions available to the public at the ministry’s website.
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“The issue that was raised by the Edo State governor, for me, is very, very sad because it is not a fact. What we distribute at FAAC is revenue that is generated and in fact distribution revenue is public information,” she said.
Ahmed said her ministry publishes revenue generated by FIRS, the Customs and the NNPC and what is distributed at FAAC.
“So, it is not true to say we printed money to distribute at FAAC, it is not true,” the minister said.
“On the issue of borrowing, the Nigerian debt is still within a sustainable limit. What we need to do, as I have said several times, is to recoup our revenue to enhance our capacity to service not only our debt but to service the needs of running government on a day to day basis.
“So our debt currently at about 23 percent to GDP is at a very sustainable level, if you look at all the reports that you see from multilateral institutions,” she said.
