Mixed reactions to FG’s claims of bankruptcy amid economic hardship

The recent assertions of an ’empty treasury’ and ‘bankruptcy’ by the Bola Ahmed Tinubu administration have triggered debates, adding to the challenges faced by Nigerians amid soaring inflation and economic hardship.

Nigeria’s fiscal scenario in 2022, where over 96% of revenue was allocated to debt servicing, raises concerns about the country’s financial stability. The total debt stocks climbed to N87.38 trillion in the second quarter of 2023, as per World Bank data.

Despite the government’s insistence on gradual steps to address economic issues, conflicting statements from the presidency, especially the claim by National Security Adviser Nuhu Ribadu that Tinubu’s administration inherited a bankrupt country, have left Nigerians with mixed feelings.

Earlier calls by former lawmaker Shehu Sani urged Tinubu to provide transparent details about the previous administration’s state, asserting that Nigerians shouldn’t make sacrifices without knowing the full picture.

An interesting twist comes with the revelation that the federal government saved about N1.45 trillion from the removal of the fuel subsidy between June and September. However, critics argue that the subsidy removal wasn’t adequately planned, leading to ongoing challenges and a persistent need to pay for the subsidy.

Economist Dr. Samson Simon points out the critical issues of generating revenue, GDP to revenue ratio, and the impact of oil theft on foreign exchange scarcity. He stresses that Nigerians deserve transparency and details about the state of the economy to contribute effectively to its recovery.

Daniel Nkemaloma Ukwu, Executive Director of Daniel Ukwu Foundation, dismisses the claims as playing with Nigerians and calls for the government to declare the liabilities left behind. He challenges the administration to set up a probe panel if sincerity exists.

The overarching sentiment from critics and experts is that the government must prioritize transparency and detailed communication to rebuild public trust and effectively address the country’s economic challenges.