During a briefing to the Senate Committee on Finance in Abuja, Minister of Finance and Coordinating Minister of Economy, Wale Edun, shed light on the origins of Nigeria’s current inflation crisis, attributing it to the staggering N22.7 trillion printed by the Central Bank of Nigeria through Ways and Means overdraft under the administration of former President Muhammadu Buhari.
Edun emphasized that this massive printing of naira lacked accompanying productive activities, leading to dire consequences such as the high inflation currently plaguing the country.
The Senate, recognizing the severity of the situation, had previously resolved to investigate the N30 trillion Ways and Means overdraft obtained and spent during the Buhari administration. This reckless spending, particularly under the leadership of Godwin Emefiele, contributed significantly to the food and security crises gripping the nation.
In response to queries from the committee, Edun highlighted the detrimental effects of money printing without corresponding productivity, stressing that it disproportionately benefited the privileged few while leaving the majority vulnerable.
Acknowledging the Senate’s role in addressing inflation, Edun outlined plans to raise N7 trillion to repay the central bank and restore fiscal balance. Additionally, he assured the committee that ongoing economic policies aimed at mitigating damage would lead to lower inflation rates and improved GDP growth in the near future.
Edun praised the present government’s focus on revenue generation, citing over N13 trillion generated from the non-oil sector in 2023 and expressing optimism for continued progress in 2024.
The minister emphasized the government’s commitment to strategic fiscal reform, applauding the Senate’s support in addressing import duty waivers and leakage issues.
Senator Sani Musa, Chairman of the Committee, underscored the importance of continued dialogue to navigate Nigeria’s economic challenges and ensure both short-term stability and long-term prosperity.
