Nigeria May Print Naira Massively to Pay Salaries from July—Obaseki

By Aduragbemi Omiyale

The Governor of Edo State, Mr Godwin Obaseki, has again raised the alarm about the economy, emphasising that the federal and the state governments may find it very difficult to pay salaries of workers from July 2023 unless the Central Bank of Nigeria (CBN) is compelled to print Naira massively.

Recall that in 2020, Mr Obaseki informed Nigerians that the apex bank was printing the local currency to make up for the shortfall of revenue shared monthly to the three tiers of government.

This was because the Nigerian National Petroleum Company (NNPC) Limited was no longer remitting proceeds from the sale of crude oil to the nation’s purse because of fuel subsidy payments.

The government played down the alarm only to later confirm that the central bank printed Naira worth trillions for budget deficits.

The federal government, under Mr Muhammadu Buhari, is now seeking the approval of the National Assembly to securitise the CBN loans, also known as ways and means, of about N23 trillion.

At the 2023 May Day celebration in Benin City on Monday, Mr Obaseki advised the federal government to remove the petrol subsidy from July 2023 to avert an economic crisis.

“It would be a miracle for the federal government and state governments to pay salaries beyond June this year without resorting to massively printing money or removing fuel subsidy. Either of these decisions will bring more hardship and pain to Nigerians, particularly workers.

“We must all ensure that the burden and pain of these measures, which must be taken, are not carried by workers alone. Workers must now rise and champion any discussion on subsidy removal.

“You must shift from the tradition of reacting when these policies have been made but insist that you take charge and ensure full transparency and disclosure.

“If we are all undertaking a reform, then the benefits and pains that will come out of the reforms must be mutually shared by all Nigerians, not just the downtrodden,” the Governor said.

But the Minister of Labour and Productivity, Mr Chris Ngige, while speaking with Channels TV on Monday night, disagreed with the Edo State Governor, advising him to reduce his political appointees to save more funds to pay workers’ salaries.

He said the government of Mr Buhari has the capacity to pay the salaries of workers, noting that the incoming administration of Mr Bola Tinubu was also capable to generating funds for the same purpose.

The federal government made provisions for the payment of fuel subsidy in the 2023 budget till next month. The sum of N3 trillion was earmarked for this, with funds to be sourced from loans and others.