Former NBA president Agbakoba urges Tinubu to emulate Obasanjo on how to raise funds to run the government

Senior Advocate of Nigeria (SAN), Olisa Agbakoba, has proposed a solution to get out of the current financial crisis facing President Bola Tinubu’s administration.

Agbakoba, a former president of the Nigerian Bar Association (NBA) called on the government to emulate the strategy adopted by former President Olusegun Obasanjo who had the same problem when he was in power.

Agbakoba further proposed a return to maximum crude oil production as a short-term solution to Nigeria’s economic challenges.

In a statement issued on Friday, the legal practitioners argued that increased oil production and revenues could provide much-needed financial relief to President Tinubu’s administration.

Citing the Obasanjo era as a reference point, Agbakoba stressed the importance of maximizing revenues from crude oil sales, and argued that by increasing production to at least 2.4 million barrels per day, the government could significantly increase its foreign exchange reserves, stabilize the naira, and reduce the country’s debt burden.

Agbakoba further suggested that the government take over control of hydrocarbon revenues from international oil companies. He believes this will enable the government to allocate funds more effectively to address pressing national needs.

The statement read, “President Tinubu does not have enough money in the national coffers to meet the enormous national needs of 200 million Nigerians. So there is a simple solution.

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“I urge President Tinubu to look at how President Obasanjo is handling his financial problems. First, President Obasanjo is tackling Corruption and eliminating waste. Nuhu Ribadu is watching that, because Nuhu fear is the beginning of wisdom.

“The second and most important thing is that President Obasanjo understands what is called public sector borrowing requirements and how much is needed to sustain the National system.

“The most important thing is a clear vision from President Obasanjo on how to increase revenues. This comes from optimal crude oil production. Crude oil revenues are fully maximized. Daily crude oil production is at maximum capacity.

“Funds from crude oil sales support the value of the Naira against the dollar. The government has been able to get things done without borrowing but using crude oil revenues. President Tinubu must reverse the trend by maximizing crude oil output, removing international oil companies from controlling our hydrocarbon revenues, paying off debts and hedging the value of the Naira against the dollar with crude oil dollars.

“So, President Tinubu must maximize crude oil production to at least 2.4 million barrels per day, pay off the debt, and use the funds to meet national needs. If this simple fiscal process continues, Nigeria will emerge from this desperate situation within 6 months.
“In the final analysis, optimal crude oil production is our way out.”

The SAN proposal comes amid a challenging economic climate characterized by soaring inflation, a depreciating currency and rising debt levels. As the government grapples with these issues, Agbakoba’s proposal offers a potential path to economic recovery, despite its heavy reliance on the oil sector.

Critics may argue that over-reliance on oil is unsustainable and could hinder economic diversification. Furthermore, the global transition to renewable energy sources poses a long-term threat to oil revenues. Despite these concerns, Agbakoba’s proposal may spark debate about the role of the oil sector in Nigeria’s economic revival.

Former NBA president Agbakoba urges Tinubu to emulate Obasanjo on how to raise funds to run govt first appeared on Latest Nigeria News | Headlines from Ripples Nigeria.