The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has pinpointed the cause of the current inflationary pressures in Nigeria to the massive printing of currency during President Muhammadu Buhari’s tenure, which he claims was executed “without productivity.”
This statement was made during a critical session with the Senate Committee on Finance on Wednesday, where the minister outlined the fiscal challenges confronting the nation.
Highlighting the gravity of the situation, Edun disclosed plans for a comprehensive audit of the N22.7 trillion that was reportedly printed aimlessly, underlining a move towards transparency and accountability in the country’s economic management.
This revelation not only sheds light on the fiscal practices of the previous administration but also signals the current government’s commitment to addressing the root causes of economic instability.
The minister’s comments come as Nigeria grapples with soaring inflation rates that have significantly impacted the cost of living and doing business in the country.
The unchecked printing of money, as noted by Edun, is a critical factor contributing to the devaluation of the Naira and the subsequent inflationary trends observed in recent years.
Economic experts have long warned about the dangers of excessive currency printing without corresponding increases in national productivity. Such practices can lead to inflation, erode public confidence in the currency, and negatively affect overall economic stability.
The decision to audit the N22.7 trillion is viewed as a necessary step towards understanding the full extent of the fiscal indiscipline and implementing corrective measures.
The Senate Committee on Finance, responding to the minister’s revelations, emphasized the need for a robust strategy to curb inflation and restore economic stability.
Legislators called for the adoption of sustainable fiscal policies that promote productivity, diversification of the economy, and reduction of reliance on crude oil revenues.
He said, “The N22.7 trillion printed by the Central Bank of Nigeria (CBN) through Ways and Means overdraft for the federal government from 2015 to 2023 landed Nigeria into hyper-inflation.
“We talked about inflation. Where has it come from? It came from 8 years of just printing money not matched by productivity. What happened was that for eight years, the weak were left to their own devices. It is the privileged few that took everything. That is the reality. So that money supply must be brought back.
“You distinguished senators have helped. You have given us the mandate to raise N7 trillion which we will do by sucking money from the market, using it to pay back the CBN and giving the government a balanced book. We are going to audit even the N22.7 trillion printed aimlessly.”
In his closing remarks, Chairman of the Committee, Senator Sani Musa (APC Niger East), said the interactive session would be a continuous exercise so that the committee would have the opportunity of being updated on the short and long term plans of the government on how to tackle the current economic situation of the country.
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