Bankruptcy Claims: Obi Challenges Nigerian Government to Declare Assets, Deficit Inherited

Peter Obi, the Labour Party’s presidential candidate for the 2023 elections, has urged the Federal Government to unveil the true financial state inherited from the previous administration led by ex-President Muhammadu Buhari.

This call comes in response to recent statements made by President Bola Tinubu, indicating that his government inherited both assets and deficits from the preceding administration; and the National Security Adviser, Nuhu Ribadu, who claimed that the terrible economic situation that Nigerians are crying about, was bequeathed to the present administration by the past government.

In a statement released on X on Thursday, Obi challenged the government’s lack of transparency regarding the assets and deficits passed on to them. He highlighted the importance of accountability in governance, emphasizing that the disclosure of inherited deficits is crucial for the public to comprehend the nation’s current financial standing and future trajectory.

“One major characteristic of responsible governance is transparency and strict accountability. This demands that the government disclose exactly the degree of deficit they inherited. What is inherited should be disclosed to enable the public to know where we are and where we are headed,” he said.

Obi criticized the present administration’s claim of inheriting a financially distressed nation without providing specific details that justify the alleged bankruptcy status. He underscored that responsible governance necessitates transparency, insisting that the government should openly declare the extent of the deficits they inherited.

Drawing a parallel to the transition from the APC-led government in 2015, Obi criticized the lack of detailed disclosure regarding the inherited situation back then.

The former Anambra State governor also spoke about the alarming escalation of Nigeria’s debt profile during the previous administration, highlighting the increase from N12.6 trillion in 2015 to N87 trillion in 2023 without significant improvements in developmental indices such as education, healthcare, poverty alleviation, and security. He lamented the deteriorating state of the country across various vital sectors, leading to the prevailing grim situation faced by Nigerians on a daily basis.

Obi stressed that Nigerians seek actionable steps and tangible improvements rather than mere statements on the state of affairs.

“Nigerians know things are bad, and they experience it daily. What they now want to hear regularly are measurable and verifiable steps to improve the situation. Also, the alarm raised by the government about the bad state of our finances raises questions about the rationale behind some expenditure items in the supplementary budget recently signed into law,” he said.

Obi questioned the justification behind certain expenditures outlined in the recently signed supplementary budget in light of the government’s claims of financial distress.

Moreover, the presidential candidate reiterated his longstanding stance on the exorbitant cost of governance, advocating for a substantial reduction. He suggested that a financially strained nation should prioritize investing available resources into critical sectors like security, healthcare, education, and poverty eradication, particularly by tackling youth unemployment.

Obi said there is a need for measurable and verifiable strategies aimed at uplifting the country from its current economic challenges, rather than allocating resources to non-essential areas.

“The present revelation also goes to buttress the argument that I have made since electioneering season that the cost of governance is too high and must be drastically reduced,” he said.