By Nathaniel Zacchaeus, Abuja
The Federal Government said yesterday that the N22.7trn printed by the Central Bank of Nigeria through Ways and Means overdraft from 2015 to 2023 was causing hyperinflation.
The Minister of Finance and Coordinating Minister of Economy, Mr Wale Edun, said this yesterday when he appeared before the Senate Committee on Finance.
He said that during this period, the printing of naira in trillions was carried out without matching it with productivity.
He said the consequence of eight years of printing money without productivity was the high inflation the country is experiencing now.
He said, “We talked about inflation, and you helped solve that. Where has it come from?
“It came from eight years of printing money unmatched 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.
“It’s not as if the money is matched by a productivity increase in output. It is not. What happened was that for eight years, the weak were left to their own devices. It is the privileged few who took everything. That’s the reality. So, the money supply must be brought back.
“You distinguished senators have helped. You have given us the mandate to raise N7 trillion naira, which we will do by sucking money from the market, using it to pay back the central bank, and giving the government a balanced book. We will audit even the N22.7trn printed aimlessly,” he said.
He, however, assured the committee members that various damage-mitigating economic policies being rolled out by the present government would soon bring about great recoveries in terms of lower Inflation and improved GDP growth rate.
He specifically informed the committee members that rather than indulging in such money printing or seeking avoidable loans, the President Bola Tinubu-led government is succeeding greatly in revenue generation, with over N13trn revenue generated from the non-oil sector in 2023.
He said the trajectory was improved in 2024, going by revenues made in January and February.
In his closing remarks, the Chairman of the Committee, Senator Sani Musa (APC Niger East), said the interactive session will be a continuous exercise in knowing the short-term and long-term plans of the government on the way out of the precarious situation.
