Global crisis: Print naira now, Jimoh Ibrahim urges FG
By Yemi Kolapo
Published: Thursday, 19 Feb 2009

Skip to next paragraph

Photo File
Jimoh Ibrahim
The Chief Executive Officer, Global Fleet Group, Mr. Jimoh Ibrahim, has advised the Federal Government to look into the possibility of printing more naira as an urgent solution to the current global financial crisis, and to improve liquidity in the economy.

In a statement made available to our correspondent on Wednesday, Ibrahim said it was better and more cost-effective to print the naira than to deplete the country’s external reserves or support domestic spending through foreign reserves withdrawals.

According to him, even though printing naira notes will lead to inflation, this can be controlled using Treasury Bills to mop up excess liquidity.

But the Central Bank of Nigeria dismissed this as impracticable, saying that the country should be talking about fiscal stimulus at this point in time.

The Deputy Director, Corporate Affairs, CBN, Mr. Festus Odoko, said in a telephone interview with our correspondent on Wednesday that economists would not argue that the country should print naira in the current situation, adding that it was necessary to think through solutions properly.

“If we print money now, how do we use it? The necessary thing at this period is to put money in critical sectors to jumpstart the economy, and it is the government that does these things,” Odoko said.

But Ibrahim said printing naira notes would reduce interest rates and increase liquidity while banks would be well funded to be able to fund companies.

“Properly funded companies will not cut jobs; they will reduce unemployment; they will fund capacity utilisation; and by extension, spending habits will be promoted, which will lead to increased activities at the Nigerian Stock Exchange,” he argued.





The chief executive noted that it would be better for government to control the inflation that could be triggered as a result of this action than to keep spending government foreign reserves.



He said, “Government is the largest spender in our economy and the moment they stop spending, the economy stops performing. Cutting domestic spending as per federation account by 34 per cent will lead to more pains and aggravate recession.

“We cannot afford to stop projects and development programmes, particularly seven point agenda, good roads and infrastructure.”

Ibrahim argued that printing of naira at this time was a confrontational approach to the on-going crisis, saying that “when every sector of the economy (private and public) is active and spending is persistent, recession will disappear”.

“If you cannot manage recession you will go into depression,” he added.

He advised government not to cut spending, saying that the crisis would only be tackled with enhanced spending.

He said the Central Bank of Nigeria should be able to correct interest rates, adding that savings must be discouraged so as to encourage economic activities.






Yemi Kolapo


The Chief Executive

Officer, Global Fleet Group, Mr. Jimoh Ibrahim, has advised the Federal Government to look into the possibility of printing more naira as an urgent solution to the current global financial crisis, and to improve liquidity in the economy.

In a statement made available to our correspondent on Wednesday, Ibrahim said it was better and more cost-effective to print the naira than to deplete the country’s external reserves or support domestic spending through foreign reserves withdrawals.

According to him, even though printing naira notes will lead to inflation, this can be controlled using Treasury Bills to mop up excess liquidity.

But the Central Bank of Nigeria dismissed this as impracticable, saying that the country should be talking about fiscal stimulus at this point in time.

The Deputy Director, Corporate Affairs, CBN, Mr. Festus Odoko, said in a telephone interview with our correspondent on Wednesday that economists would not argue that the country should print naira in the current situation, adding that it was necessary to think through solutions properly.

“If we print money now, how do we use it? The necessary thing at this period is to put money in critical sectors to jumpstart the economy, and it is the government that does these things,” Odoko said.

But Ibrahim said printing naira notes would reduce interest rates and increase liquidity while banks would be well funded to be able to fund companies.

“Properly funded companies will not cut jobs; they will reduce unemployment; they will fund capacity utilisation; and by extension, spending habits will be promoted, which will lead to increased activities at the Nigerian Stock Exchange,” he argued.





The chief executive noted that it would be better for government to control the inflation that could be triggered as a result of this action than to keep spending government foreign reserves.



He said, “Government is the largest spender in our economy and the moment they stop spending, the economy stops performing. Cutting domestic spending as per federation account by 34 per cent will lead to more pains and aggravate recession.

“We cannot afford to stop projects and development programmes, particularly seven point agenda, good roads and infrastructure.”

Ibrahim argued that printing of naira at this time was a confrontational approach to the on-going crisis, saying that “when every sector of the economy (private and public) is active and spending is persistent, recession will disappear”.

“If you cannot manage recession you will go into depression,” he added.

He advised government not to cut spending, saying that the crisis would only be tackled with enhanced spending.

He said the Central Bank of Nigeria should be able to correct interest rates, adding that savings must be discouraged so as to encourage economic activities.


http://www.punchng.com/Articl.aspx?theartic=Art200902199392064

But the Central Bank of Nigeria dismissed this as impracticable

so called billionairas have been printing money illegally and pumping it into circulation with utmost ease for long time .
how is it now impracticable?

ode remo:

so called billionairas have been printing money illegally and pumping it into circulation with utmost ease for long time .
how is it now impracticable?

zimbabwe and the weimar republic?

asha 80:

_{*nigeria situation approaching zimbabwe*}

. I agree with this one. How can printing more money solve your problems? Doesn't this Jimoh Ibrahim know anything about inflation? I have said it times without number on this forum but people ignore me, the only solution is to shun globalization, world bank, IMF and all this stuff that brings Africa backward. Nigeria when will you learn?


Mr Jimoh must learn to understand that Nigeria has no power as the U.S that prints money without any backings.

asha 80:

_{*nigeria situation approaching zimbabwe*}

L O L .

ok