CBN and the regulatory role of ‘printing money’
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By Kadiri Abdulrahman
“Government’s printing of Naira simply means loans advanced to states to pay salaries and survive; and not the literal interpretation of printing money from the factory and sharing to the public,” according to Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN).
It was Emefiele’s initial reaction to a recent comment by Gov. Godwin Obaseki of Edo that the CBN printed about N60 billion to augment Federal Account Allocation Committee (FAAC) subvention to states in March.
Speaking at the Edo Transition Committee stakeholders engagement, Obaseki had raised concern that the step the apex bank took was an indication that the Nigerian economy was ailing.
By Peter Egwuatu, Assistant Business Editor, Nkiru Nnorom, Tunde Oso & Nnamdi Ojiego
Following the financial crisis across the 36 states of the federation, economic experts have suggested measures to be taken for the sub-national governments to survive.
As of press time, many states of the federation appear cash-strapped following the fall in revenue accruable to the federation account.
This has resulted in the drop in the monthly allocation to states from the Federal Account Allocation Committee, FAAC.
According to the National Bureau of Statistics, NBS, the Internally Generated Revenue at state Level Q4 of 2020 including the Federal Capital Territory, FCT, decreased from N3.8 trillion in 2019 to N3.599 trillion in 2020.
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CBN Governor, Mr. Godwin Emefiele
The Central Bank of Nigeria (CBN) Governor, Mr Godwin Emefiele, on Thursday, clarified that government’s printing of Naira simply meant loans advanced to States to pay salaries and survive; and not the literal interpretation of printing money from the factory and sharing to the public.
In what could be described as a response to the comment by Governor Godwin Obaseki of Edo State that the Federal government allegedly printed N60 billion to augment its March monthly allocations to the states and local governments, Emefiele, wondered why any controversy should be built around the fund.
Zainab Ahmed, Minister of Finance, Budget and National Planning disclosed this on Wednesday.
by SaharaReporters, New York
Apr 14, 2021
The Nigerian government has denied it printed N60 billion to augument March allocation to states as alleged by Edo state governor, Godwin Obaseki.
Zainab Ahmed, Minister of Finance, Budget and National Planning disclosed this on Wednesday.
Ahmed described the allegation by Obaseki as untrue and sad.
Obaseki had at the Edo transition committee stakeholders engagement last week said that Nigeria was in huge financial trouble.
“When we got FAAC (Federal Account Allocation Committee) for March, the federal government printed additional N50-N60 billion to top-up for us to share,” he had said.