Nigeria Is Broke – Federal Govt Opens Up

The Federal government has raised the alarm that Nigeria is broke and cannot sustain the subsidy regime, hence the hike in the price of fuel.

Speaking to State House Correspondents on Wednesday after the Federal Executive Council( FEC) meeting presided over by President Muhammadu Buhari, Minister of Information, Lai Mohammed lamented that the economy of the country is shrinking.
According to Mohammed, the government has the responsibility at times to take very difficult
decisions which may be unpopular.
He said the current problem is not really about subsidy removal. It is about that Nigeria is broke. Pure and simple!
“It is like somebody who has been earning N100,000 a month and he is faced with a situation where his employer says henceforth you will be earning N10,000 a month. He would need to make some very painful decisions and some very painful adjustments. That is the situation with Nigeria today.
“A few months ago, we were earning as much as $100 for every barrel of crude. In the months of February and March, we no longer have the resources, the foreign exchange to bring in refined fuel products. And our economy is shrinking.
“We appreciate the fact that the decision is going to affect everybody. We appreciate what we are going through, but Nigerians should also know that the government has the responsibility at times to take very difficult decisions. So, it is not always about popularity.