Gov Obaseki Declares Nigeria ‘Technically Bankrupt,’ Urges Immediate Restructuring

The Edo State Governor, Godwin Obaseki, has declared that Nigeria is “technically bankrupt” and called for urgent restructuring of the country to address the situation.

Speaking during an interview on Channels TV’s ‘Politics Today’ on Thursday night, Obaseki expressed concerns over the federal government’s handling of the economy.

“Nigeria is technically bankrupt,” Obaseki stated, noting the country’s ongoing struggle to meet financial obligations.

He criticised the government for failing to adapt to current realities, and said it was still operating as if it had the resources of the past.

“When you are bankrupt anywhere in the world, like in a state, you restructure your affairs so you can reorganize and meet your obligations,” Obaseki noted, saying, “But Nigeria is still behaving as if they have money like it used to.”

According to the governor, Nigeria’s fiscal issues have persisted for some time, with the government spending more than it earns and showing little effort to reduce expenditures.

Obaseki warned that the federal government no longer has the capacity to effectively manage the economy in its current state.

He urged for an immediate restructuring of the country’s economic framework to prevent further decline.

He said, “Nigeria has been in trouble for a while. We don’t have enough to cover our expenditures and we are not reducing our expenditures and we are not earning more. The federal government does not have the capacity anymore to manage the economy.”

Nigeria’s total public debt is now N121.67bn ($91.46bn), the Debt Management Office (DMO) revealed in June 2024.

The DMO stated that as of March 31, 2024, the country’s domestic and external debts stood at N121.67tn ($91.46bn).

While total domestic debt was ₦65.65trn ($46.29bn), total external debt was ₦56.02trn ($42.12bn).

The debt represents external and domestic borrowings by the Federal Government and the 36 state governments and the Federal Capital Territory (FCT).