There are reports that the Central Bank of Nigeria (CBN) continued to print more than US$150 million in state funds in the days after the initial allegations, triggering such consequences. Dan Orbih, vice chairman of the opposition People’s Democratic Party (PDP), said in a recent turn that CBN Governor Godwin Emefiele’s response to the allegations was “politically motivated” .

Money printing is not sustainable

The local news website quoted Orbih as saying that “if drastic measures are not taken to resolve the situation”, the country may be worse than “what happened in Uganda”. The politician said:

We need young people to come up with ideas and plans to help the government get out of trouble, because Godwin Obaseki’s revelation recalls memorably the former President Idi Amin’s administration What happened in Uganda during this period.

PDP officials also concluded that “no government can sustain this kind of abuse of the country’s economy.”

The Governor of Edo City, Godwin Obaseki, stated in his initial speech that “the Federal Government (has) printed another 12 to 150 million U.S. dollars (50 to 60 billion naira) to recharge We share.” However, Zainab Ahmed, the Minister of Finance of Nigeria, rejected this request. The minister said that, in fact, the funding for such reports is “income from different government departments.”

CBN printing rights

In his response to the allegations on April 15, Governor Emefiele called these statements “unfortunate and completely inappropriate.” Although Emefiele did not directly deny or confirm these requirements, he pointed out that “when financial difficulties arise, banks must always take action to support the government.”

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At the same time, the Governor of CBN was quoted in another publication, claiming that the central bank has the right to print money. The governor said:

That is our job-printing. This is about borrowing money, so there is no need to argue like printing money. It’s like going into a factory to print naira and start distributing it on the street.

Emefiele also revealed that the country had encountered a similar situation in 2016, although he admitted that the situation was “worse today”. However, the report quoted the president of CBN as saying that the central bank “is also concerned about inflation.”

Do you agree that CBN should print more content in times of economic hardship? You can share your thoughts in the comments section below.

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