Abdulrasaq Kamaldeen
The Governor of the Central Bank of Nigeria, Dr. Olayemi Cardoso, has stated that Nigerians are experiencing the repercussions of excessive money being injected into the economy. He cited the N37.5 trillion supply to the economy, comprising a N27 trillion Ways and Means loan and N10.5 trillion in interventions from the past administration.
Speaking at the BusinessDay CEO Forum held in Lagos on Thursday, July 11, 2024, Cardoso said,“Interest rate is not set by the governor of the Central Bank. The interest rate is set by the members of the monetary policy committee. Thankfully, we have a monetary policy committee composed of independent-minded people who are solely driven by data.
“The MPC has made it very clear that for them, the major issue is taming inflation and has also made it very clear that they will do whatever is necessary to tame inflation. Sadly, we have a situation where a lot of money supply went into the system. We all saw Ways and Means soar to N27 trillion. We saw interventions of N10.5 trillion. It has its consequences. In large respect, that is what we are paying for now.”
The excess money supply to the economy has generated mixed reactions on social media.
Innocent Ogwumike commented, “It’s no more food scarcity, it’s now excess money in circulation. In a journey where the driver is blind, the passengers should just start shouting before it’s too late.”
Ifaakoko Ifako questioned, “How long will the CBN price-stabilizing action take effect? Nigerians are suffering from the unregulated cost of living due to the high cost of food, transportation, fuel, and other basic needs.”
Oguta Samuel said, “How can we explain to laymen, fathers, and mothers that the reason for the high price of fuel, diesel, Naira depreciation, and high rate of unemployment is too much money in circulation? This is too bad.”
Okeugo Chike added, “Nigerians don’t need theory now but rather practical solutions. We expected changes in the economy that will be reflected in the standard of our living.”
