Obaseki: Nigeria is technically bankrupt — but we’re behaving like there’s money

Godwin Obaseki, governor of Edo, says Nigeria is “technically bankrupt” and that the federal government can no longer put a band-aid on the economy.

Speaking in an interview with Channels Television on Thursday, Obaseki said the country still behaves like it has money.

The Edo governor said Nigeria must “restructure” to meet its financial obligations.

“Nigeria is technically bankrupt. When you’re bankrupt anywhere in the world like in the states (USA), you file for what we call chapter 11. You restructure your affairs so that you can reorganise and be able to meet obligations,” he said.

“Nigeria is not restructuring its affairs. It’s still behaving as if it has money like it used to. It’s been in trouble for a while. I won’t say insolvent, I will say technically we don’t have enough to cover our expenditures and we are not reducing our expenditures and we are not earning more.

“It’s total redesign. First the federal government does not have the capacity anymore to manage the economy on the way and scale it is doing today.

“We are producing 1.3 million barrels of oil because you are trying to do it centrally.

“We have 137 oil wells in Edo state, only 53 or less are producing except you create a new design where you have the component parts of this country take advantage of economic opportunities that they have and pay what they need to the federal government.”

The Edo governor said the federal government is “stuck in the past” by using same methods to solve the county’s challenges.

“This federal government is stuck in the past. You cannot resolve malignant problems using the same tools you have used through the years,” he added.

“It is not that the people there are not smart or stupid. It is just that they don’t have the courage to take some of the decisions that need to be taken.

“The problem of Nigeria today is structural. The structure has expired.”