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Alleged N60bn mint: Obaseki’s prediction may come true, if … Rewane

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By Nosa Akenzua, Benin

A renowned economist and financial expert, Bismarck Rewane, on Monday, warned that if the fiscal deficit of Nigeria was not properly managed, the fear expressed by Edo state governor, Mr Godwin Obaseki, that the country’s economy was sliding might come to be. 

Obaseki had, last week, expressed the fear that the country’s economy needed urgent attention to the extent that the federal government minted N60 billion to support the Federation Allocations for the three tiers of government in March 2021

Rewane, in his reaction, in Benin City, Edo state, said that, much as he could not categorically say that the federal government minted money for the purpose Governor Godwin Obaseki said, it is worth considering how the country’s budget was funded and not backed by the necessary investors and investments including deposits, adding that it could be said that money might have been minted. 

He expressed worry that the economy of the country was seriously in a mess adding that in the past 10 years, external debts had tripled while optimal use of capital stock had dropped; so, what are we borrowing for?”

As a way out of the economic mess, Rewane advised that the federal government had to embark on fiscal consolidation, adding that “This will help to avoid fiscal recklessness for which Obaseki raised the alarm. These, he said, are urgent priorities for fiscal responsibilities, otherwise the questions would be “what have we borrowed and what have we used the borrowings to do.”

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