The Minister of Finance, Olawale Edun, has attributed the current economic challenges facing Nigeria, including rising inflation and economic hardship, to the printing of N22.7 trillion by the Central Bank of Nigeria (CBN) under the government of former President Muhammadu Buhari and ex-CBN governor Godwin Emefiele. Edun made this disclosure during an interface with the Senate Committee on Finance on Wednesday, shedding light on the ramifications of the Ways and Means loan utilized during the previous administration.
During the session, Edun emphasized that the Ways and Means loans amounting to N22.7 trillion under the past administration were executed aimlessly, without proper consideration for the long-term consequences. He further asserted that the alleged reckless spending of the overdraft collected from the CBN under Emefiele significantly contributed to the country’s food and security crises, exacerbating the prevailing economic challenges.
Addressing the committee, Edun expressed grave concerns over the inflationary pressures plaguing the nation, pinpointing the root cause to the excessive printing of money without corresponding increases in productivity. He underscored the urgent need for a comprehensive audit of the CBN’s printing activities over the past eight years, signaling the government’s commitment to ensuring transparency and accountability in monetary policy operations.
“We talked about inflation, and you helped solve that. Where has it come from? It came from the eight years of printing money not matched by productivity. It’s not like when you earn dollars and free the naira alongside it, although there’s even a better way than that. But that’s still not as bad,” Edun remarked during the interface.
He commended the distinguished senators for their support and highlighted the government’s strategy to address the fiscal challenges, including the mandate to raise N7 trillion through prudent fiscal measures. Edun outlined plans to reduce liquidity in the market by repaying the Central Bank and restoring fiscal balance, emphasizing the imperative of conducting a thorough audit of the N22.7 trillion printed aimlessly.
The revelation by the Minister of Finance has sparked widespread concern and scrutiny, with stakeholders calling for accountability and transparency in monetary policy decisions. The staggering amount of N22.7 trillion printed by the CBN underscores the urgent need for prudent financial management and oversight to safeguard the nation’s economic stability and prosperity.
In response to Edun’s revelations, members of the Senate Committee on Finance expressed deep apprehension and called for swift action to address the root causes of inflation and economic hardship. They reiterated the importance of fiscal discipline and prudent financial management to mitigate the adverse effects of excessive money printing on the economy.
As Nigeria grapples with the daunting task of restoring economic stability and promoting sustainable growth, the government’s commitment to conducting a comprehensive audit of CBN’s monetary operations is a significant step towards addressing the underlying issues and charting a path towards recovery. The revelations made by the Minister of Finance underscore the need for proactive measures and concerted efforts to address the systemic challenges facing the nation’s economy.
