Edo State Governor Godwin Obaseki has declared Nigeria “technically bankrupt” and called for an urgent restructuring of the country to address the situation.
During an interview on Channels TV's 'Politics Today' programme on Thursday evening, Obaseki expressed concern over the federal government's handling of the economy.
“Nigeria is technically bankrupt,” Obaseki said, highlighting the country's continued struggle to meet its financial obligations.
He criticized the government for failing to adapt to current realities and said it still operates as if it had the resources of the past.
“When you are bankrupt anywhere in the world, as a state, you restructure your affairs so that you can reorganize and meet your obligations,” Obaseki said, adding: “But Nigeria continues to behave as if it has money, as it used to.”
According to the governor, Nigeria's fiscal problems have persisted for some time, with the government spending more than it earns and showing little effort to reduce expenditure.
Obaseki warned that the federal government no longer has the capacity to effectively manage the economy in its current state.
He called for an immediate restructuring of the country's economic framework to prevent further decline.
He said: “Nigeria has been in trouble for some time. We don’t have enough to cover our expenses and we are not reducing our expenses and we are not earning more. The federal government no longer has the capacity to manage the economy.”
Nigeria's total public debt now stands at N121.67 billion (US$91.46 billion), the Debt Management Office (DMO) revealed in June 2024.
The DMO said that as at March 31, 2024, the country's domestic and external debts stood at N121.67 trillion ($91.46 billion).
While total domestic debt was ₦65.65 trillion (US$46.29 billion), total external debt was ₦56.02 trillion (US$42.12 billion).
The debt represents external and internal loans from the Federal Government and the 36 state governments and the Federal Capital Territory (FCT).
