Nigeria Is Experiencing Financial Crisis, Says Edo Governor Adams Oshiomhole
By SaharaReporters, New York

The inability of the Nigerian Government to meet its financial obligations to state governments has been described as a recipe for national disaster which can lead to serious security challenges.

Making this assertion during a press briefing in Benin-City, Thursday, Edo State Governor, Mr. Adams Oshiomhole, said the country was experiencing financial crisis as most states could not pay the salaries of their workers.

Following the Nigerian Government's inability to pay monthly allocation to states, Mr. Oshiomhole implored the Nigerian National Petroleum Corporation (NNPC) to pay into the Federation Account the over N2.3 trillion it was owing it.

He said the corporation was insincere with Nigerians as it could not reveal the number of barrels of crude oil it was refining daily.

“I don’t know if the federal government is broke but I know there is serious crisis and it is unprecedented in the history of this country. For the first time since 1999, allocations can no longer come as at when due to states. I have been involved in trying to understand what the reasons are and I have not seen anything yet. Whether we use the word broke or you deny the word broke, the truth is that there is financial crisis in Nigeria which has very serious national security implications.

“Because when states can’t pay salaries, federal government can’t pay salaries as at when due, and you can’t pay your contractors and your contractors will begin to retrench their workers, that is recipe for national disaster. So, I am hoping that NNPC should wake up and meet its obligation to the federation account otherwise, the integrity of government is at stake.

"If I can’t keep my promise, federal government can’t keep its promise, all other governors can’t keep their promises, the Nigeria electorate will be so disillusioned and it will be a disaster. So I am hoping that NNPC recognises that it cannot be business as usual and they have few cases to answer as far as I am concerned," the governor said.

According to him, “Two years ago, it was about the kind of money we were spending on subsidy. In no time following series of probes and enquiries by the National Assembly and by the presidency they have since discovered the kind of money they stole as regards subsidy, all the people that conspired with them and I believe the EFCC is dealing with that.

"But just as we are dealing with that, now we begin to hear about the theft of our crude oil such that what is accruing to the Federation Account is not enough to meet budgetary provision. As you know, this year’s budget was based on $79 per barrel, that is about 2.4, 2.5million barrels per day. Now the news is that contrary to all the forecast, nothing is getting better.

"And it is sad that we are not doing enough to change things for the better, the challenge of government in any part of the world is to deal with the issues. If the economy is not doing well, you do certain things differently and recover. Well it is no more a matter for debate that we are 10 months into the new year and oil has performed very well, selling between $105 and $110 per barrel throughout 2013, which means that if we have budgetary provision of $79, we ought to have a surplus of about $30, which should be in the crude oil account. But rather than having this surplus we are witnessing a situation where Federal Allocations no longer come as at when due, and states can’t pay salaries.

“In Edo State like the rest of other 35 states, part of our July allocation has not been paid. About one-third of our August allocation has not been paid and nothing has been paid for September allocation. And it is the first time since 1999 that this thing is happened. The explanation by NNPC is completely watery. They collect 455,000 barrels per day for domestic refinery, but they also agreed that the refineries are not working, that the very best they cannot refine more than 100,000 barrels per day, so the question is what you are doing with the balance of 355,000?

"So, why will you run business like that, you take 455,000 barrels a day to refine, even when your refineries are not working. Okay whether the refineries did it, where is the money? If you multiply $109 by 455,000 barrels per day, you will imagine the kind of money NNPC ought to be paying into the federation account. And from some of the figures that have been thrown around, NNPC is owing the federation account over N2.3 trillion. And Edo State has a share of that amount that will run into several billions of naira.

“But last month, many states could not pay salaries, but in Edo State we were able to pay. Even the federal government could not pay salaries; I think they paid July salaries around August 14. But we paid August salaries in August."

Oga governor pls cut ur salary give 2 d poor dat money u guys r using flying 2 one country n another use it n give 2 d poor(orphan)

The inability of the Nigerian Government to meet its financial obligations to state governments has been described as a recipe for national disaster which can lead to serious security challenges.

Oga wht r u doing abt it instead 2 work hand 2 hand n make ds country a better place u r going around running ur mouth

“I don’t know if the federal government is broke
If u dnt no na me go n

Akpa ife: Oga governor pls cut ur salary give 2 d poor dat money u guys r using flying 2 one country n another use it n give 2 d poor(orphan)

The inability of the Nigerian Government to meet its financial obligations to state governments has been described as a recipe for national disaster which can lead to serious security challenges.

Oga wht r u doing abt it instead 2 work hand 2 hand n make ds country a better place u r going around running ur mouth

“I don’t know if the federal government is broke
If u dnt no na me go n

what's the meaning of this jargons u split out ?

hooged: what's the meaning of this jargons u split out ?

He means this is not the time for politics, they should all come together as one entity, not as a PDP member or APC but as one Nigeria to solve this problem in NNPC.

hooged: what's the meaning of this jargons u split out ?

"Split" out abi....

This is a serious and delicate matter. God help Nigeria.

Okimski: He means this is not the time for politics, they should all come together as one entity, not as a PDP member or APC but as one Nigeria to solve this problem in NNPC.

What is dis 1 saying?

Fractious politics aside. Its becoming highly probable that Nigeria could be broke. Billions in bugdet arrears to states, Oil theft, strikes over money/unpaid salaries (ASUU, ASUP,etc), expensive bokoharam war, etc. It takes no brainer to realize money could be short. The sooner it sinks into the thick skulls of Nigerians the better.

Hunger is beckoning God save us. I urge people to consider basic crop gardening.
You can join the agriculture community on www. to interact with other farmers and agriculture professionals.

FG broke ni!! Broke ko!!
Toh, it's not only FG that is broke, me too am broke, haven't load my MTN for the past 3 weeks now.

FG is broke , GEJ is not a good manager

For the first time since 1999 Federation Account is not funded. God help us in this country.

I watched NOI some months ago come before the senate comittee to justify to them why they needed to review the budget,
It got to a point where she made a statement within the neighbourhood of this "you are asking for an increment is it not when there is money to do so, I am here sayin that the budget as it is cannot be implemented...."

The government is not broke, but cannot implement the budget based on their forecast and projections considering the current harsh reality on the only source of revenue that can sustain the 'monthly allocation' to each state!
So instead of whinning everybody should start looking at very creative ways to close the shortfall... Since crude theft and oil bunkering is not going away anytime soon.

When you spend all your budget maintaining your over bloated government and borrow from china to fund everything under the sun including repainting airports, you are seriously broke.

ASSU is just the beginning, other arms of the FG are going to start falling apart towards complete FG paralysis.

The sad part is GEJ not admitting that his government is over bloated and needs trimming, in fact, he's defending his over bloated government and also claiming that corruption is not his or our problem and corruption it's only our perceptions and figment of our imagination.

Like they say, be careful what you wish for.

Nigerians wished for GEJ and they got GEJ. Another opportunity is coming and I hope Nigerians right this wrong, sad and unhelpful situation..

Akpa ife: Oga governor pls cut ur salary give 2 d poor dat money u guys r using flying 2 one country n another use it n give 2 d poor(orphan)

The inability of the Nigerian Government to meet its financial obligations to state governments has been described as a recipe for national disaster which can lead to serious security challenges.

Oga wht r u doing abt it instead 2 work hand 2 hand n make ds country a better place u r going around running ur mouth

“I don’t know if the federal government is broke
If u dnt no na me go n

Comments like this make me think that some brains are incapable of assimilating simple sentences rendered in simple English. Now if you are incapable of understanding these sentences, how do you understand the implications for you and your family. A governor has just told you what has been happening in your Country and you are insulting him for that. Na wah oo!

I think we can make some money by going after our ever patriotic looters . I even hear Nigerian ex presidents/head of states receive a very dicey amount of millions every year as pension, that even their children and wives are recipient of such 'magnanimous' act. Don't know how true that is, but very possible when dealing with serial, die-hard and 'patriotic' Nigerian plunderers.

Akpa ife: Oga governor pls cut ur salary give 2 d poor dat money u guys r using flying 2 one country n another use it n give 2 d poor(orphan)

The inability of the Nigerian Government to meet its financial obligations to state governments has been described as a recipe for national disaster which can lead to serious security challenges.

Oga wht r u doing abt it instead 2 work hand 2 hand n make ds country a better place u r going around running ur mouth

“I don’t know if the federal government is broke
If u dnt no na me go n

guy FG is truely broke, @BOLDED,
How many of those rich Pastors are doing it?
How do you expect my comrade governor to do what your president is not doing?

Jonathan's destiny is to bankrupt Nigeria - Pastor Tunde Bakare.
After their oil subsidy channel of stealing was blocked last year, they've resorted into stealing the oil directly from source. I'm sure by the time the country eventually goes bankrupt in the not-too-distant future, everybody will go their separate ways!