Obaseki: CBN’s threat to states shows governance has plummeted ― PDP governors

The Peoples Democratic Party Governors Forum (PDP-GF) says it is alarmed at the partisan slant of patriotic advice to the Federal Government on its monetary policies by Governor Godwin Obaseki of Edo state, has assumed.

Making the assertion in a statement issued Sunday by the Director-General of the forum, Hon Cyril Maduabum, the Governors wondered whether the Central Bank of Nigeria (CBN) was trying to be vindictive and vengeful on states over the advice, saying that it is an indication that governance has plummeted in the country.

Recall that the CBN Governor, Godwin Emefiele, had announced that states must begin to pay back the bailout loan from the Federal Government following Obaseki’s disclosure of the apex bank’s printing of N60 billion to shore up revenue to the states.

The PDP-GF statement said, “It is unhelpful for the Progressive Governors Forum to join the fray in the manner it did by its recent statement attacking the bona fides of Governor Obaseki who merely warned the monetary authorities about the danger of uncontrolled use of Ways and Means, that is, the printing of Naira, to support government’s expenditure.

“Governor Obaseki has a background in economics and finance and is a very responsible Governor who talks in a measured way.

“His advice, which by the way has been corroborated by none other than the Governor of the CBN himself, and the international rating agency FITCH, should be heeded rather than being crucified for sounding a note of caution.

“No doubt the Federal government has been supporting the States in the area of agriculture, budget, refund of Federal Government executed projects by States and a few other areas of intervention.

“Is CBN trying to be vindictive and vengeful by recalling its loans to the States because of informed advice by a Governor? It is unfortunate that governance has plummeted to this level.

“The Federal government should plug financial leakages in the system and curb wasteful expenditure of billions of Naira on projects that can be executed by the private sector and save a lot of money in the process, thereby relying less on Ways and Means by the CBN, which brings pressure on the Naira with its inflationary consequences. Inflation in Nigeria is currently at 18.2 %, the highest in recent years. We should all be concerned to find ways of stemming the tide.

“We are all involved in the urgent task of rescuing the economy of Nigeria and nobody should indeed play the ostrich.”

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