The federal government has denied claims by Edo State Governor, Godwin Obaseki that N60 billion was printed in March to support allocation to states.
In a viral video online, Obaseki had made he claim stating that the money the country has borrowed from other countries and organizations will be in excess of 15 to 16 trillion by the end of 2021.
He also expressed fear that Nigeria might experience hyperinflation like Argentina, because oil is no longer bringing in much revenue like before.
Obaseki added that politicians are only focus on the upcoming election and not the economic situation of the country.
Minister of Finance, Budget and National Planning, Zainab Ahmed, has now described Obaseki’s comment as untrue and sad.
Ahmed said Nigeria’s debt is still within sustainable limit and efforts are on to improve revenue generation capacity.
“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.
“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.”