Finance Minister Links N22.7tn Printed by CBN Under Buhari to Inflation Woes

Finance Minister Wale Edun disclosed that the N22.7tn printed by the Central Bank of Nigeria (CBN) through Ways and Means overdraft during former President Muhammadu Buhari’s tenure is a major factor contributing to the current inflation in the country.

Speaking before the Senate Committee on Finance in Abuja, Edun highlighted that the massive printing of naira occurred without corresponding productive activities, leading to the present inflation challenges. The Finance Minister pointed out that the consequences of eight years of printing money without supporting productivity are now evident in the high inflation facing the nation.

Edun’s revelation comes as the Senate recently resolved to investigate the N30tn Ways and Means overdraft obtained and spent by the Buhari administration. The Senate attributes the alleged reckless spending of the overdraft to the food and security crises currently affecting Nigeria. The lack of transparency in providing details of the spending to the National Assembly prompted the Senate to establish an Ad-hoc committee to probe the matter.

During his briefing, Edun emphasized that the focus now is on implementing economic policies to mitigate the damage caused by past financial decisions. He assured the committee that measures are being taken to address inflation and improve the GDP growth rate. Edun highlighted the government’s efforts to generate revenue, pointing to over N13tn generated from the non-oil sector in 2023. He expressed confidence that the economic recovery trajectory would continue in 2024.

The Finance Minister acknowledged the support of the Senate in addressing fiscal challenges, citing their endorsement of measures to tackle import duty leakages. He emphasized the government’s commitment to repairing the fiscal situation in the country and outlined strategic plans to achieve financial stability.

The interactive session with the Senate Committee on Finance is part of an ongoing effort to communicate the government’s short-term and long-term plans to navigate economic challenges.