The fallout sparked by reports that the Central Bank of Nigeria (CBN) printed over $150 million for statesâ€™ funding continued a few days after the allegations were initially made. In the latest twist, the opposition Peopleâ€™s Democratic Party (PDP) vice-chairman Dan Orbih said the CBN governor Godwin Emefieleâ€™s response to the allegations is â€œpolitically motivated.â€
Money Printing Unsustainable
In his riposte, Orbih is quoted by a local news site suggesting that â€œif drastic measures were not taken to address the situationâ€ then the country might be headed for a worse outcome â€œthan what happened in Uganda.â€ The politician said:
The PDP official also concludes that â€œno government can sustain the economy of a country with that type of abuse.â€
In his initial remarks, Godwin Obaseki, Edo State Governor alleged that the â€œfederal government (had) printed an additional $120-$150 million (50-60 billion naira) to top-up for us to share.â€ However, the claim has been dismissed by the Nigerian finance minister, Zainab Ahmed. According to the minister, this reported allocation is in fact â€œrevenue from different agencies of the government.â€
CBNâ€™s Right to Print Money
In his own response to the allegations on April 15, governor Emefiele called the claims â€œunfortunate and totally inappropriate.â€ Although Emefiele did not directly deny or confirm the claims, he argued however that â€œthe bank must always act to support the government at times of financial difficulties.â€
Meanwhile, the CBN governor is quoted in a different publication asserting that the central bankâ€™s right to print money. The governor said:
Emefiele also revealed that the country had faced a similar situation in 2016 although he acknowledges that the situation â€œfar worse today.â€ Still, the report quotes the CBN governor stating that the central bank is â€œalso concerned with issues of inflation.â€
Do you agree that the CBN should print more in times of economic difficulties? You can share your thoughts in the comments section below.
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