The Minister of Finance and Coordinating Minister for Economic Affairs, Wale Edun, has said that the N22.7 trillion issued by the Central Bank of Nigeria to the federal government through revenue between 2015 and 2023 during the era of former President Muhammadu Buhari has pushed the country into a bind. . current inflation.
Edun expressed his lament in a meeting with the Senate Committee on Finance on Wednesday, saying that during this period, trillions of naira were printed without any corresponding production activity.
He said eight years of unproductive money printing resulted in the high inflation the country now faces.
Two weeks ago, the Senate voted to investigate the 30 trillion yen revenue overdraft obtained and disbursed by the Buhari administration.
He further said that the alleged reckless spending of overdrafts collected from the CBN during the Godwin Emefiele administration was the main cause of the food crisis and security crisis facing the country.
Subsequently, the Red House resolved to set up a special committee to investigate the overdraft, as details of the expenditure were deliberately not disclosed to the National Assembly.
He said, “We talked about inflation and you all helped solve it. Where did it come from?
“It came from eight years of just printing money that wasn’t worth the productivity. It’s not like making dollars and releasing naira with it, but there are better ways than that. But, Still not that bad.
“Money does not equal productivity gains in output. It’s not. And what happened was that for eight years the weak were left alone. A few took everything. They were a privileged class…”
He added, “You distinguished senators have helped us. You have given us the mandate to raise 7 trillion naira. We will also audit the 22.7 trillion NN that was printed for no purpose.”
However, he assured committee members that the current government’s mitigation economic policies will soon lead to a strong recovery in terms of lower inflation and improved GDP growth.
He told members of the committee that the President Bola Tinubu-led government, rather than indulging in such money printing or seeking avoidable loans, will collect more than N13 trillion from the non-oil sector in 2023. He specifically informed that the country has achieved great success in the area of revenue generation. The orbit is expected to be improved in 2024, he added.
He said: We’ve done the hard part. Mr. President, your bold and courageous steps are recognized around the world as unusual.
“To take such a risk and make such a powerful change to something that was wrong. And it wasn’t just a countermeasure. It wasn’t just about raising subsidies or interest rate margins. No, this was a strategic plan. And the entire financial side, the government’s finances, have been repaired.”
Mr. Edun added, “Distinguished senators, please support and urge us to do something about the leakages in our import tariffs and exemptions system, thereby further repairing the fiscal and financial situation of this country.” They have further contributed to encouraging and registering the government,” he said. And we explained what we were going to do. And I think your body language gives you a sense that it’s on the right track. ”
In his closing remarks, the Committee Chairman, Senator Sani Musa (APC Niger East), said that this dialogue session was aimed at informing the government’s short- and long-term plans to emerge from the precarious situation. He said it would be an ongoing exercise. situation.
