“Nigeria is not broke” – Fashola

Minister of Works and Housing Babatunde Raji Fashola has said that Nigeria is not broke.

He made this comment in reaction to questions on a program on Channels TV where he was asked about the fiscal crisis being faced by Africa’s largest economy.

Nigeria’s Minister for Finance Zainab Ahmed had revealed the country’s debt service had now surpassed revenue generated in the first four months of this year stoking fears among analysts that the country is in a debt crisis.

Fashola interjected Seun Okinbaloye, the Channels Anchor when he remarked; “We are in a debt crisis at the moment” immediately telling him

“Seun, I think you need to understand (sic) with the clip that I saw about the Minister of Finance, she didn’t say that we were in a debt crisis. She didn’t say that she was talking about the challenges of financing fuel subsidy, and if it was the same thing that I saw recently, in the public conversation when they were presenting a medium-term expenditure framework or something, the challenges of financing our budget with the maintenance of subsidy. This Nigeria was in a debt crisis, she didn’t say that so don’t import words that I don’t recall hearing.”

Seun pressed on “I ask the question again whether Nigeria is broke” to which Fashola now responded, “I have told you that to the best of my knowledge, Nigeria is not broke being in debt and being able to service your debt in conventional finance is not being broke.”

Watch the video below

To the best of my knowledge Nigeria is not broke. Being indebted and being able to service your debt in conventional finance is not being broke. – Minister of Works and Housing, Babatunde Fashola, SAN.#SundayPolitics pic.twitter.com/SQqdsEi9Um

— Channels Television (@channelstv) July 24, 2022

What the Finance Minister Said

According to the Minister, Dr. Zainab Ahmed, the inability to increase crude oil production, as well as subsidy deductions, posed significant challenges to Nigeria’s revenue generation.

“Crude oil production challenges and PMS subsidy deductions by NNPC constitute significant threat to the achievement of our revenue growth targets, as seen in the 2022 Performance up to April,” she said.

“Revenue generation remains the major fiscal constraint of the Federation. The systemic resource mobilization problem has been compounded by recent economic recessions. Bold, decisive and urgent action is urgently required to address revenue underperformance and expenditure efficiency at national & sub-national levels,”