- Vice President Yemi Osinbajo has reacted to allegations that the CBN is printing money to support the federal government
- Osinbajo stated that the whole idea that the apex bank is printing money to support the Buhari-led government is completely absurd
- He however acknowledged that the CBN had intervened in the agricultural sector, but stressed that that was not illegal, and that the amount expended was not significant
Allegations that the Central Bank of Nigeria is printing money to support the Buhari-led federal government have been debunked by Vice President Yemi Osinbajo, who described them as ‘absurd’.
According to The Cable, the vice president debunked the allegations as he responded to a question at the Nigeria Civil Society Situation Room Dialogue which took place in Abuja, the nation’s capital.
In leaked minutes of a meeting of the CBN’s Monetary Policy Committee, a member of the committee, Doyin Salami, was quoted as saying that the federal government was being provided with a ‘piggy bank service’ by the apex court.
NAIJ.com gathers that there has reportedly been an increase in CBN ‘claims’- consisting of overdrafts, treasury bills, converted bonds and other lending- on the federal government.
The claims have reportedly gone up from N678 billion in December 2013 to N6.5 trillion in April 2017.
However, as he responded to questions from civil society organisationas at the dialogue, Osinbajo stated about the allegations: “That is certainly false.”
He further stated: “I think it is very sad that that is being circulated. I think the whole idea that that the CBN is printing money to support government is completely absurd.
“And the context on which it was accredited to the person I think it was completely misunderstood.
“If you look at our M1, M2, the amount of money being circulated is within appropriate limits. And inflation has continued to go down month by month.
“Honestly, if there is money out there way beyond limit then we should expect that inflation will begin to go up. But that is not the case.
“Of course, there has been a firm-up on government borrowing and that is significant and we have been very upfront about what we are doing.
“The DMO (Debt Management Office) is required to publish the debt profile of government regularly and only three weeks ago the last debt profile was published.
“The government has largely funded its activities through the treasury bills.
“There is no law that says the CBN should not intervene in agriculture. I personally believe that interventions are important especially in areas that government has funds. But how much has CBN expended?
“So far on the anchors borrowers programme (ABP), it has expended N52 billion and that is not a significant amount of money. The budget is about N7 trillion.”
Meanwhile, NAIJ.com previously reported that the Central Bank of Nigeria (CBN) was accused of allegedly emptying its vaults to finance the last presidential election in Nigeria.
Sources conversant with the last administration reported about the recklessness of Nigeria’s apex bank in collusion with the leadership of the previous ruling Peoples Democratic Party.
The money was reportedly taken directly from the dollar reserve vaults of the central bank.
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