Federal Government Responds to Edo State Governor Obaseki's Criticism of Economic Reforms

Strategic Insights -

Nigerian Federal Government officials, led by Minister of Information and National Orientation Mallam Mohammed Idris, have squarely addressed criticisms from Edo State Governor Godwin Obaseki regarding fuel subsidy removal and foreign exchange reforms introduced by President Bola Tinubu's administration. The government argues that Obaseki's statement overlooks the broader economic picture and that the removal of fuel subsidy has actually led to increased revenue for Edo State. Mallam Mohammed Idris described Obaseki's actions as hypocritical, intended to divert attention from his state's poor performance.

Key Takeaways:

  • The Federal Government, in a statement, accused Edo State Governor Godwin Obaseki of hypocrisy for criticizing President Bola Tinubu's economic reforms while failing to acknowledge the benefits of these reforms to his state.
  • The government noted that Obaseki's statement is at odds with the views of his colleagues in the National Economic Council, who commended the decision to remove fuel subsidy at their recent monthly meeting.
  • The statement highlighted that Obaseki's state, Edo, has actually benefited from the removal of fuel subsidy, with its FAAC allocation doubling between June and July 2023.
  • The Federal Government emphasized that the removal of fuel subsidy has led to increased revenue for states, including Edo, and criticized Obaseki for not acknowledging this.
  • Mallam Mohammed Idris called on Obaseki to focus on impactful projects that genuinely uplift the people of Edo State, rather than making "narratives which do not provide the complete picture".
  • The government highlighted national decisions led by President Tinubu, which aim to engineer a resilient and sustainable economy, and noted that Edo State, like all other states, has access to more FAAC revenue due to these economic decisions.

Statistics:

  • FDAAC allocation to Edo State more than doubled from June to July 2023, reaching a new high.
  • The FAAC allocation increase indicates a significant boost to the state's revenue.
  • The National Economic Council has approved the disbursement of N5 billion to each state for the procurement of food items for distribution to families.
  • The council has also approved plans to provide 11,500 CNG-powered mass transit vehicles for affordable public transportation.
  • The federal government is working on ongoing plans to supply fertilizers to farmers and support farmers to cultivate 500,000 hectares of arable land for staple crops.

Sources:

  • Statement from the Minister of Information and National Orientation, Mallam Mohammed Idris
  • Article from the Thisday Newspaper on August 24, 2023