The Minister for Budgeting and Planning yesterday stated that the Federal Government may “adjust” spending due to the large deficit.
The message is clear, Nigeria is broke, we have no money.
The started reason for the forecast “adjustment” is to deal with the ballooning deficit.
If this statement gets the attention it should, we can expect the FG to issue a denial in coming days.
Despite the fact that the Minister has spoken the truth and the government hasn’t spent even tiny fraction of what it stated in the budget, there will be a denial issued, saying all is OK and on track.
This is because there can be no negative story coming from Aso Rock.
Remember Kemi “the village bean counter” Adeosun announcing that there would be less borrowing? (probably correct as no lender in their right mind would now take the credit risk). The reaction from the FG came hours later saying it her statement was not necessarily true.
In this case the facts support the minister.
There will have to be much less spending than predicted in this year’s and next year’s budgets. There is simply not the revenue to pay for it.
This means the government growth strategy will flounder before it has started.
There will be no state strategy for diversification.
It’s all down to the private sector now.
Entrepreneurs and foreign investors are the only ones that can help Nigeria recover.