Finance minister blames Buhari's decision to print money recklessly for the current inflation

FINANCE minister Wale Edun has blamed the N22.7trn ($14.3bn) printed by the Buhari administration for the current runaway inflation afflicting the nation pointing out that the massive printing of notes was conducted without any corresponding productive activities.

According to the National Bureau of Statistics (NBS), inflation rose to 29.9% during the course of January this year from 28.92% recorded in December 2023, with rising food prices being the main catalyst behind the surge. Ever since the federal government removed petrol subsidies, the cost of living has just escalated across the country, pushing the price of basic foodstuffs beyond reach.

Many commentators have blamed the government policy of removing the petrol subsidy as being responsible for the crisis but according to Mr Edun, the extra money printed by the Central Bank of Nigeria (CBN) is the main cause. He pointed out that the cash printed under the Ways and Means overdraft facility of the Buhari administration, was responsible for the current inflation in the country.

Speaking while briefing the Senate Committee on Finance in Abuja yesterday, Mr Edun noted that the printing of trillions of naira was carried out without any corresponding productive activities. He added that the consequence of the eight years of printing money without productivity is the high inflation confronting the country now.

Two weeks ago, the Senate resolved to probe the N30trn Ways and Means overdraft obtained and spent by the Buhari administration. It stated that the alleged reckless spending of the overdraft collected from the CBN under its then governor Godwin Emefiele largely accounted for the food and security crises facing the country.

Addressing the senate, Mr Edun, assured the committee members that various damage-mitigating economic policies being rolled out by the present government, would in no distant time, bring about great recoveries in terms of lower inflation rate and improved gross domestic product growth rate. He added that rather than indulging in such money printing or seeking for avoidable loans, the President Bola Tinubu administration is succeeding greatly in the area of revenue generation with over N13tn raised from the non-oil sector in 2023, adding that the trajectory is being improved upon in 2024.

Mr Edun said: “We talked about inflation, and you have helped to solve that. Where has it come from? It came from the eight years of just printing money not matched by productivity. It’s not like when you earn dollars and you 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 productivity increase in output. It is not and what happened was that for eight years, the weak were left to their own devices. It is the privileged few that took everything.

“You distinguished senators have helped. You have given us the mandate to raise N7tn, 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 are going to audit even the N22.7tn printed aimlessly.”