Muhammad Sanusi II, a former governor of the Central Bank of Nigeria, claimed that the Naira’s value was depreciated and inflationary pressure was brought on by the central bank’s lending through Ways and Means to the federal government under the administration of former President Muhammadu Buhari.
The CBN said that the N22.7 trillion loan to the federal government had been securitized in order to protect its balance sheet. Through Ways and Means, the federal government can borrow money from the CBN in order to raise money.
The central bank has started a vigorous monetary tightening campaign through a variety of liquidity control tools, such as open market operations, Open Buy Back (OBB), and high rates on T-bills, according to the 14th Emir of Kano. This shows that the bank is adhering to its primary mandate of maintaining the stability of the financial system and controlling inflation.
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“I have hope, particularly for the near future. The central bank’s balance sheet has rapidly expanded through several sources during the past eight years. And that has made the currency weaker and increased inflation. At yesterday’s MTN Capital Markets Day, an event hosted by MTN Group to offer updates and insights to the financial community, including investors, analysts, and stakeholders, Sanusi II stated, “And that is the fact.”