During a session with the Senate Committee on Finance, Finance Minister and Coordinating Minister of the Economy, Wale Edun, pointed to the unproductive printing of trillions of naira during President Muhammadu Buhari’s administration as the root cause of the current inflation in Nigeria.
Edun emphasized the need to conduct a thorough audit of the N22.7 trillion printed without clear direction, stating, “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 has resulted in hyperinflation.”
He elaborated, “The surge in inflation can be traced back to eight years of merely printing money without any corresponding increase in productivity. During this period, the vulnerable were neglected while a privileged few monopolized resources. This harsh reality necessitates a reduction in the money supply.”
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Addressing the senators, Edun outlined their mandate to raise N7 trillion by withdrawing liquidity from the market. This fund will then be utilized to repay the CBN and restore fiscal equilibrium. Additionally, Edun pledged to conduct a comprehensive audit of the N22.7 trillion printed aimlessly.
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.