The Federal Government has described as untrue the comment by the Edo State Governor, Godwin Obaseki, that it printed N60 billion in March to support federal allocation to States courtesy of the Federation Account Allocation Committee (FAAC).
It also dismissed Obaseki’s worry on the rising debt profile that has put Nigeria in ‘huge financial trouble’, saying that the country’s debt is still within sustainable limits.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, reacted to Obaseki’s comment when confronted by State House Correspondents on Wednesday.
The Edo Governor was quoted as saying last Saturday that, “when we got FAAC for March, the federal government printed additional N50-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-N16 trillion.”
But the Minister of Finance explained that “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 a revenue that is generated and in fact distribution revenue is a 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.
“On the issue of the borrowing, the Nigerian debt is still within sustainable limit. What we need to do as I have said several times is to improve our revenue to enhance our capacity to service not only our debt but to service the needs of running government on day to day basis.
“So our debt currently at about 23% to GDP is at a very sustainable level. If you look at all the reports that you see from multilateral institutions.”