The Minister of Finance and Coordinating Minister of Economy, Wale Edun, revealed on Wednesday that the hyperinflation currently affecting Nigeria is a direct result of the N22.7tn printed by the Central Bank of Nigeria through Ways and Means overdraft for the Federal Government from 2015 to 2023, under former President Muhammadu Buhari. Edun, speaking before the Senate Committee on Finance, emphasized that the massive printing of naira during this period occurred without a corresponding increase in productivity, leading to the high inflation currently plaguing the country.
Two weeks ago, the Senate decided to investigate the N30tn Ways and Means expenditure by the Buhari-led Federal Government, citing reckless spending as a major concern. The Senate attributed the reckless use of the overdraft obtained from the Central Bank under Godwin Emefiele to the current food and security crises in the country. In response, the Senate established an Ad-hoc committee to scrutinize the undisclosed details of the spending.
During the recent session with the Senate Committee, Edun highlighted the consequences of the eight years of money printing without productivity, stating that it favored the privileged few while leaving the weak at a disadvantage. He commended the Senate for granting the mandate to raise N7tn to offset the central bank and achieve a balanced book for the government. Edun assured the committee that the present government’s economic policies would contribute to lower inflation rates and improved GDP growth.
Edun informed the committee that President Bola Tinubu’s administration is focusing on revenue generation instead of resorting to money printing or unnecessary loans. He reported over N13tn revenue generated from the non-oil sector in 2023, with expectations of continued improvement in 2024 based on January and February revenues.
In closing, Senator Sani Musa, the Chairman of the Committee, emphasized that the interactive sessions would continue to explore the government’s short-term and long-term plans to navigate the challenging economic situation.
