Nigeria is broke, economy on brink of collapse – FG

The Federal Government on Wednesday raised alarm that Nigeria is broke and that the economy is on the brink of total collapse.

This is coming as the Central Bank of Nigeria, CBN, also revealed that Nigeria's output growth declined by 2.47% in 2015.

The Minister of Information and Culture, Lai Mohammed, revealed this shocking news yesterday while responding to questions from newsmen on the new fuel hike after the Federal Executive Council (FEC) meeting chaired by President Muhammadu Buhari at the Presidential Villa, Aso Rock.

Mohammed stated that the hike from N86.50 to N145 happened because Nigerian is broke stressing that it 'is not about subsidy removal. It is about the fact that Nigeria is broke. The economy is shrinking.', he said and further maintained that the Federal government does not have foreign exchange to import fuel.

Lai Mohammed accompanied by the Attorney General of the Federation, AGF and Minister of Justice, Abubakar Malami and Minister of Power, Works and Housing, Mr. Babatunde Fashola and Labour Minister, Dr. Chris Ngigie said that Nigeria's foreign earning had dwindled and that it became apparent for the government to look inward and part of that was the hike in fuel.

'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 were short so, 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.' - Nigerian Pilot.