The minister stated that the CBN’s eight-year printing of money without productivity has been a key contributor to inflation and other economic difficulties in the country.
According to Olawale Edun, Minister of Finance and Coordinating Minister of the Economy, the Central Bank of Nigeria (CBN) under Godwin Emefiele printed a total of N22.7 trillion naira notes over the last eight years as part of the Ways and Means loan granted to the administration of former President Muhammadu Buhari.
The minister disclosed this on Wednesday during an interactive session with members of the Senate Committee on Finance at the Senate Complex in Abuja.
In May 2023, the Senate accepted former President Buhari’s request for a N22.7 trillion Ways & Means loan from the CBN to cover budget deficits.
During the interactive session with MPs, Mr Edun stated that printing money for eight years without productivity was the primary source of inflation and other economic issues in the country.
“We talked about inflation, and you have helped to solve that. Where has it come from?
“It came from eight years of just printing money not matched by productivity. It’s not like when you earn dollars and you free the naira alongside it, although there’s even a better way than that. But that’s still not as bad.
“It’s not as if the money is matched by productivity increase in output. It is not. And what happened was that for eight years, the weak were left to their own devices. It is the privileged few that took everything. That’s 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 central bank and give the government a balanced book. “We are going to audit even the N22.7 trillion printed aimlessly,” Mr Edun stated.
The minister, on the other hand, told committee members that the federal government will continue to look for a long-term solution to the country’s deteriorating economy.
Mr Edun expressly reminded the parliamentarians that, rather than seeking loans, President Tinubu’s administration will enhance the country’s revenue.
Sani Musa, Chairman of the Senate Committee on Finance, responded, stating that parliamentarians will continue to work with the federal government to find a long-term solution to the deepening economic situation.
