Nigeria is broke, government must cut costs — Afenifere Chief Economist

The Chief Economist of Afenifere, Segun Sanni, has called on the Nigerian government to reduce its expenditures, stating that the country has effectively become insolvent.

Speaking as a guest on Channels Television’s “Sunrise Daily” programme on Wednesday, Sanni criticised what he described as the “lavish” spending habits of the Federal Government under President Bola Tinubu.

“The people of Nigeria would understand better if the government can come clean with us. Nigeria is indeed very broke. We need to cut costs,” Sanni remarked, highlighting the need for transparency regarding the nation’s financial status.

Sanni pointed to the large salaries of government officials and other extravagant expenditures, arguing that they do not align with the economic challenges facing the country.

“A government that is spending lavishly and living large cannot tell Nigerians that Nigeria is broke. We are indeed broke, but our government is not acting as though we are,” he stated.

He questioned several government expenses, including the ₦90 billion spent on Hajj, ₦21 billion allocated for a new Vice President’s lodge, and ₦40.6 billion designated for the renovation of Aso Rock in the 2023 budget. “We hear all these scandalous figures being mentioned, but how much of it is actually being spent on the people?” Sanni asked.

Sanni also condemned the Nigerian National Petroleum Corporation (NNPC), describing it as “the most corrupt, opaque, and inefficient organisation in the world.”

He criticised the NNPC for spending the country’s funds without proper accountability, stating that the 2023 audit report could not be trusted. “We have an NNPC that is more or less a salesman. It collects our money after selling the oil and spends it as it likes without any monitoring, oversight, or supervision. Those unchecked expenses of NNPC are what Nigerians are being called on to bear,” Sanni added.

Offering a solution to Nigeria’s economic crisis, Sanni urged for more judicious spending of government resources, with every expenditure properly accounted for. “The government of the country should be in an austerity mode where every dollar or naira we make is judiciously spent. There has to be more prudent spending of our money across all levels of government,” he stressed.