Central Bank of Nigeria, C.B.N and its Governor, Godwin Emefiele during the week have continued to give justice to why the apex bank printed money to support governments at all level.
The apex bank Governor, Godwin Emefiele while answering questions from journalists during the week said the bank printed money to susport government due to unfortunate economic situation in Nigeria.
Central Bank of Nigeria thereafter posted on its social media handles that the concept of printing money is to lend and it is irresponsible for the apex bank to stand idle and refuse to suspport governments at this critical time.
OsazuwaAkonedo reports that C.B.N and its Governor fail to explain to the general public the concept or consequences of printing money for an unqualified client who do not have the loan repayment capacity.
When a bank gives more loans or over indebt a business, the consequence is that such business may go bankrupt.
The business owner may end up selling his personal properties and the busness fixed assests to pay off the loan.
This may explain why many states are gradually going bankrupt or retrenching workers because larger portion of the state capital or main revenue for running the state are now used for debt servicing or loan repayment while taking more loans.
President Muhammadu Buhari budgeted more than 3 trillion naira representing 90 percent of Overhead Cost for loan repayment in this year 2021.
President Muhammdu Buhari again budgeted 4 trillion representing 60 percent of the expected revenue as new loan to finance 2021 budget.
This shows that Nigeria is already an unqualified client in line with loan administation process that should not be granted new loans.
The 2021 budget reveals that Nigeria is practicing money printing economy system.
In actual sense, the federal government according to the indication of the 2021 budget is not paying back loans, rather it’s using new loans to cover up old loans and loan burden on the country may continued to grow unabated.
It may be right to say President Muhammadu Buhari and the Central Bank Governor, Godwin Emefiele are only promoting evil days with their style of loan adminstration process.
Central Bank of Nigeria in its words said thus:
The concept of printing of money is about lending money and that is our job…It will be irresponsible for the CBN or any Central Bank or Fed to stand idle and refuse to support its government at a time like this. #Emefiele.
Prior to C.B.N statements, Edo State Governor, Godwin Obaseki revealed to the public recently that Federal Government printed additional 50 to 60 billion naira for the three tiers of government to share as allocation.
Federal Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed faulted and denied Governor Obaseki claim, insisting that they never printed money to share.
Governor Obaseki in new response asked the Finance Minister, Zainab Ahmed to stop monetary rascaility that is pushing Nigeria into worsening future and as well the Minister should stop playing the ostrich.