Starting from October, the Federal Government will be unable to pay workers’ salaries due to the bad stare if the economy, the Governor of Central Bank of Nigeria, CBN, Godwin Emefiele, said yesterday.
Emefiele who painted a gloomy picture of the economy during a closed-door meeting with senators.
He stared further that if the present situation in the country continued, the Federal Government might not be able to pay salaries of its workers with effect from October this year.
He also said Nigerians would be forced to pay general taxes which would not exclude petroleum products. Emefiele, who was with the senators for an hour, was said to have presented a comprehensive account of the economy in the last one year which, according to him, had been characterised by external shocks, including sharp decline in commodity prices, geo-political tensions along important global trading routes and tightening monetary policy in the United States.
The CBN governor told the senators that it was frightening that the nation was experiencing economic stagnation and inflation at the same time, explaining that ordinarily, both were not supposed to happen simultaneously.
A source said he expressed concern that the economy was gloomy, stagnant and worsening as a result.
According to the source, Emefiele, who noted that the economy was biting on all, with almost all activities crippled, said indices that would have made the economy grow were not in place at the moment.
He was also said to have made reference to the renewed bombing of pipelines by Niger Delta Avengers as one of the factors pulling down the economy.
The CBN governor was said to have Iinked these occurrences, especially with respect to the over 70 per cent decline in oil prices from about $116 per barrel in June 2014 to about $30 per barrel earlier in the year. FG may not be able to pay workers’ salaries.