The current inflation in the nation, according to Finance Minister and Coordinating Minister of Economy Wale Edun, is the result of N22.7 trillion produced by the Central Bank of Nigeria through an overdraft on the Ways and Means program under the administration of former President Muhammadu Buhari.
This was said by Edun on Wednesday in Abuja during a briefing for the Senate Committee on Finance.
He pointed out that there were no commensurately productive activity during the time when trillions of naira were printed.
He claims that the high rate of inflation the nation is currently experiencing is a direct result of the eight years of money printing without productivity.
Two weeks prior, the Senate decided to look into the N30 trillion Ways and Means overdraft that the Buhari government had received and used.
It went on to say that the nation’s food and security challenges were mostly caused by the alleged careless use of the overdraft obtained from the CBN under Godwin Emefiele.
The Red Chamber subsequently decided to form an Ad hoc committee to look into the overdraft since the National Assembly had been purposefully kept in the dark about the specifics of the spending.
“We discussed inflation, and you have contributed to its solution,” he remarked. From where has it originated?
It resulted from eight years of merely producing money at a productivity that was below par.
“There is a better approach than simply earning dollars and giving the naira away with it. It’s not like that at all. Still, that’s not as horrible.
It’s not like the growth in output productivity matches the increase in money. It’s not. The weak were left to fend for themselves for eight years as a result. The fortunate few are the ones who took everything.
“You distinguished senators have helped,” he continued. We will take money out of the market, use it to pay back the central bank, and provide the government a balanced budget since you have given us the order to generate N7 trillion. We plan to audit everything, including the carelessly printed N22.7TN.
Nonetheless, he gave the committee members his word that the current administration’s numerous damage-mitigating economic initiatives would soon result in significant improvements in terms of decreased inflation and faster GDP growth.
With over N13tn in revenue from the non-oil sector in 2023, Edun stated that the President Bola Tinubu-led government is succeeding greatly in the area of revenue generation rather than engaging in such money printing or seeking out unnecessary loans. He added that the trajectory is being improved upon in 2024.
“We should not be depressed,” he said. The challenging portion is over. Mr. President, via the audacious and brave actions that are acknowledged globally as going above and beyond what is customary.
“To alter the incorrect things with such bold and dangerous abandon. Furthermore, it went beyond a list of actions. It involves more than merely raising the rate margin or subsidies here or there. No. The entire fiscal aspect of the government’s finances has been fixed, and it is a strategic strategy.
Edun went on, “By supporting and urging us to do something about the leakages in the import duty, waiver system, you, distinguished senators, have helped further to encourage and enroll the executive to further repair the finances, the fiscal situation of this country.”
And we’ve already outlined our plan of action for you. And I can tell from your body language that you think it’s the appropriate course of action.
The committee’s chairman, senator Sani Musa (APC Niger East), stated that the interactive session will be an ongoing effort to learn about the government’s short- and long-term strategies for resolving the hazardous situation.
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