A Review of the Nigerian Energy Industry

Nigerian govt declares it is cash strapped, not broke

President, Dr Goodluck Jonathan30 October 2013, Abuja – The Nigerian government Tuesday declared that it was cash strapped but not broke, sending disturbing signals to its business partners, contractors and investors.

The disclosure was made by the Accountant General of the Federation, Jonah Ogunniyi Otunla and corroborated by Dr. Bright Okogwu, director-general, Budget Office of the Federation.

Otunla and Okogwu both spoke at a meeting with federal revenue generating agencies, organised by the National Assembly Joint Committee on Finance and Appropriation, explaining that being cash-strapped does not mean being broke.

Otunla said that “Nigeria is not broke, but it is currently having cash flow problems. “We may have cash flow problem, but we are not broke.” He said.

“Countries like Greek and Spain are broke, they are now approaching their international neighbours for bail out, but Nigeria has not done that and we are nowhere near that situation.”

Okogwu said though, “the Nigeria currently experiencing cash flow problems from time to time; it does not suggest that it is broke.

“Nigeria is not broke. We may have cash flow problem. But countries like Greek and Spain are broke. They are now approaching their international neighbours for bail out, but Nigeria has not done that and are nowhere near that situation.”

Mrs. Maria Alade, deputy governor, Central Bank of Nigeria, CBN, who represented Mallam Saunsi Lamido Sanusi, the apex bank governor, at the joint sitting, said since the AGF and the DG of the Budget Office had said Nigeria was not broke, that was also the position of the CBN.

“As bankers of the Federal Government, it is not our duty to tell the nation whether it is broke or not. But we can tell the amount in accounts at anytime,” she said.

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