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Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ - Politics - Nairaland

Nairaland Forum / Nairaland / General / Politics / Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ (19836 Views)

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Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by Islie: 7:52am On Aug 23, 2023
.......FAAC shares N966.11b July revenue


The Federal Government plans to cut the cash in circulation to rein in inflation, Minister of Finance and Coordinating Minister for the Economy (CME), Mr. Wale Edun, hinted yesterday.

He said the measure became imperative to keep rising inflation at a desirable and stable level.

Edun, who was inaugurated on Monday as minister, spoke in Abuja while chairing the Federation Account Allocation Committee (FAAC) meeting.

“There should be discipline in money supply to control inflation in the nation’s economy,” the minister told FAAC members.


By emphasing discipline in money supply, the CME Finance minister is referring to the need to carefully regulate the creation and circulation of money in the economy.

On the monetary side, it involves controlling the growth of money supply through various measures, such as adjusting interest rates, open market operations, or setting reserve requirements for banks.

On the Fiscal side, caution will be required on how the federal, state and local governments disburse money.

By maintaining discipline in money supply, the government aims to keep inflation within a target range that is conducive to stable economic growth and price stability.

Ultimately, the objective is to strike a balance between ensuring adequate money supply to support economic growth and preventing excessive inflation that can erode the value of currency and cause economic instability.

The finance minister also noted that there was the need for government to mobilise resources to deliver on its mandate to increase employment and reduce poverty.


The FAAC agreed to share N966.11 billion as federal allocation to the three tiers of government for last month.

The amount was shared from a total gross revenue of N1.746 trillion.

The total revenue was made up statutory revenue of N397.42 billion; Value Added Tax (VAT) revenue of N271.95 billion; Electronic Money Transfer Levy (EMTL) revenue of N12.84 billion and Exchange Difference revenue of N283.9 billion.

For last month, the total deductions for cost of collection came to N62.42 billion, while the total deductions for savings, transfers, refunds, and tax credit cancellation amounted to N717.96 billion.

The Excess Crude Account (ECA) stood at $473,754.57.

A communiqué made available to reporters after the meeting further detailed the distribution of the total distributable revenue.

Of the N966.11 billion, the Federal Government got N374,48 billion, state (N310.67 billion) and the 774 local government areas went home with N229.41 billion.

Additionally, N51.55 billion was shared among the relevant states as 13 per cent derivation revenue.

The gross statutory revenue for the month of July was N1.15 trillion, which was lower than the N1.15 trillion generated in the preceding month (June) by N2.49 billion.



From the available N397.42 billion as statutory revenue, the federal government was given N190.49 billion, the 36 states got N96.62 billion and the councils shared received N74.49 billion.

The oil producing states got N35.82 billion as 13 per cent derivation.

For July, the available gross revenue from VAT was N298,79 billion, which was higher than the N293.41 billion available in June by N5.38 billion.

The federal government received N40.792 billion, the states (N135.97 billion) and councils (N95.18 billion) from the N271.94 billion distributable VAT revenue.


The N12.84 billion EMTL was shared among the federal government, which got N1.93 billion, the state governments, which received N6.42 billion and the local government areas (N4.49 billion).

From the N283.9 billion Exchange Difference revenue, the Federal Government received N141.28 billion, the state governments (N71.66 billion, the councils received N55.245 billion, and N15.72 billion was shared among the relevant states as 13 percent mineral revenue.

The communiqué noted that Imports and Excise Duties, as well as Electronic Money Transfer Levy (EMTL), saw significant increases for last month.

There were notable declines in revenues from VAT, Petroleum Profit Tax (PPT), Companies Income Tax (CIT) and Oil and Gas Royalties.


https://thenationonlineng.net/govt-to-curb-rising-inflation-with-cut-in-money-supply/

12 Likes 2 Shares

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by mrvitalis(m): 7:59am On Aug 23, 2023
Like I said making a micro economist CBN governor and minister of finance is a tragedy waiting to happen

Buhari did same at least they were humble to accept they didn't know took time before taking decisions

Now we have a bad combination of arrogance and ignorant people as heads of our CBN and finance ministers


my solution
Cutting money supply would harm the already struggling businesses ...so what to so

Pump money into key manufacturing sectors as low interest loans 10% max give them 8 months before Tenure starts

Make sure they are in this two areas 1) import substitution products 2) exportable products produced at below international market price

This would marke goods available to match money supply dragging down inflation creating jobs and increasing revenue for government


Note when I mean pump in money I don't mean 50billion 😂😂

I mean 5 trillion minimum

121 Likes 16 Shares

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by Judekenny: 8:02am On Aug 23, 2023
Buhari tried same strategy and it failed

34 Likes 5 Shares

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by igwebuike01: 8:02am On Aug 23, 2023
mrvitalis:
Like I said making a micro economist CBN governor and minister of finance is a tragedy waiting to happen

Buhari did same at least they were humble to accept they didn't know took time before taking decisions

Now we have a bad combination of arrogance and ignorant people as heads of our CBN and finance ministers


my solution
Cutting money supply would harm the already struggling businesses ...so what to so

Pump money into key manufacturing sectors as low interest loans 10% max give them 8 months before Tenure starts

Make sure they are in this two areas 1) import substitution products 2) exportable products produced at below international market price

This would marke goods available to match money supply dragging down inflation creating jobs and increasing revenue for government


Note when I mean pump in money I don't mean 50billion 😂😂

I mean 5 trillion minimum
Exactly Peter Obi's plan

47 Likes 2 Shares

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by Wainey: 8:02am On Aug 23, 2023
Ok
Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by Racoon(m): 8:05am On Aug 23, 2023
What! Creating money scarcity to curb a double digit galloping inflation? Something that led to economic meltdowns that many people and businesses are yet to recover from let alone the untimely death of many people around the election period? Another disastrous policy.

To think that this is the economic strategy the overhyped Wale Edun is thinking as a panacea to the this economic crisis simply shows how grossly clueless and myopic he is like the druggie that appointed him into position.Abeg let the poor survive and breath. Bunch of assholes.

55 Likes 8 Shares

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by mrvitalis(m): 8:06am On Aug 23, 2023
igwebuike01:

Exactly Peter Obi's plan
That is exactly what obi said that won me over... He is a business man he knows what we manufacturers face in this country

I can't take loans to buy machines you give me at 40% interest tenure starts that day... When it would take me 6 months to get machine 1 months to clear and install

I would already be paying interest for money that has not not started making me any money

By 7 months am meant to have paid 82% of the loan I took?

This is exactly what kill industries...

100 Likes 14 Shares

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by MrsTwrite(f): 8:08am On Aug 23, 2023
This was PB's plan.

2 Likes

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by Racoon(m): 8:08am On Aug 23, 2023
mrvitalis:
That is exactly what obi said that won me over.He is a business man he knows what we manufacturers face in this country. I can't take loans to buy machines you give me at 40% interest tenure starts that day...

When it would take me 6 months to get machine 1 months to clear and install.I would already be paying interest for money that has not not started making me any money.By 7 months am meant to have paid 82% of the loan I took? This is exactly what kill industries...
Nigeria have another bunch of clueless, incompetent mofos with zilch knowledge of the self-inflicted economic and political debacle they have enmeshed this battered country into. Only God will salvage this nation via a competent person.

32 Likes 1 Share

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by LikeAking: 8:10am On Aug 23, 2023
Also control the rate at which we patronize foriegn devices like education abroad, vacation, medication, importation,etc.

These are the true wasters of the economy.

Imagine the number of Nigerians buying bullet proof cars, luxury cars, expensive wines, going on vacation and various senseless trips abroad and the new my child must school abroad culture?

All of them waste our resources…

Mount unnecessary pressure on our fix demand.

15 Likes 1 Share

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by Houseontherock1: 8:10am On Aug 23, 2023
Ignorance is absence of knowledge; arrogance is confidence not backed by knowledge! Arrogance plus ignorance is a fatal combo and that's what our leaders are exhibiting presently - from top to bottom!
Most knowledgeable persons have some doubts as they see multiple possibilities, but a less knowledgeable person sees only one possibility and will arrogantly pursue it, destroying everything in the process. They should kindly release Emefailure if they'll copy his supposedly unpopular ideas

10 Likes 4 Shares

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by oluseyiforjesus(m): 8:17am On Aug 23, 2023
This people don't knw wat dey are doing

14 Likes

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by adecz: 8:17am On Aug 23, 2023
APC don come again with another
Text Book economist that can't differentiate
theory from practical reality..


Who tell this mumu say the inflation
is because there is too much liquidity in
the economy❓❓❓☹️☹️


Nigeria isn't really experiencing inflation
in the real sense. What we are experiencing
is the total and uncontrolled bastardization
of the value of our national currency, the
Naira, due to inept governance of APC
which started with Buhari❗️❗️❗️


The value of your currency is tied to the
level and quantum of your export from
which you get the forex to strengthen the
value of your economy.

Under Buhari, Nigeria got to a level that
our major source of forex, NNPC basically
went under and stopped remitting dollars💲💲 to our coffers, and we killed
all our refineries and started importing
💯% of our Petroleum products needs.

Most of our economy became dependent
on foreign sourced raw materials, which
you must buy with dollars💲💲 which we
are gradually running out of.

Fertilizer, machinery & chemical input for
agriculture, all imported. Flour for bakery,
vehicles and spare parts for transport, drugs
in the health sector. Printing of electoral
materials etc.

In fact, the most reliable source of forex
to our economy became the diaspora remittances.

For example, a bag of foreign rice has always
hovered at around 💲40 and it has not
really changed that much.

💲40 at the exchange rate of about one
💲to 150 Naira of the PDP era was equivalent
to N6000 naira per bag.

Today, that bag of rice is still 💲40 , but
at exchange rate of N1000 to 💲1, you are
looking at 40000 per bag, which by the
time you put other charges, you arrive
at N46k to N55k depending ...


What baffles me is why Tinubu has not
moved against Mele Kyari the NNPC GMD.
By the time dem open that man nyash,
wetin Emefiele do go be kindergarten.
And if dem catch the man, Buhari must
be implicated.


The man is attempting to do what
Emefiele did in January that almost killed
the economy.

23 Likes 1 Share

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by lincsnuel: 8:18am On Aug 23, 2023
This is exactly what Emefiele said. That's why he and Buhari implemented the policy that negatively impacted businesses and the citizens. Nigeria economy is not something you wake up and start implementing some random policy. You need to understudy it and understand the policy that will be optimal and bring positive outcome in not so long time and I quite agree with mrvitalis points.

Pump money into manufacturing and give them time then you'd start seeing the positive results.

16 Likes 1 Share

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by porthouse7(f): 8:19am On Aug 23, 2023
May God help you to achieve it
Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by naijaboy756: 8:19am On Aug 23, 2023
Nigeria!!!!

How can RISING INFLATION be kept at desirable and stable levels?

What is desirable about rising inflation ni tori Òlòrun 🤷‍♂️

3 Likes

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by fr3do(m): 8:19am On Aug 23, 2023
Big head wey big like my own.

when a hammer is all what you have, everything will look like a nail.

The inflation, Nigeria is suffering from transcends an excess of money supply, it mainly involves the drop in production, manufacturing and agriculture.
Farmers cannot farm in peace, the economy is suffocating SME, FX is showing manufacturers shege.

16 Likes

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by id4sho(m): 8:20am On Aug 23, 2023
E remain 5000 Naira note lipsrsealed

1 Like

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by jumper524(m): 8:20am On Aug 23, 2023
What best way to do it if not through naira redisgn.
But then again, it should be properly implemented, banks should be given time frames to improve their data base to avoid glitch in transfer or overwhelmed data base.
Empower micro business users with POS like MONEI point and the rest, limit the daily cash withdrawal to 5k for all bvn users account.
You can't transfer beyond 5k to any POS.


I remembered the naira redesign saga gave the Naira strength against the dollar, if only Emefiele considered the SWOT analysis before embarking.
Infact in Abuja, the naira to dollar rate dropped to as low as 480 then.
When these policy is implemented, unnecessary spending would be cut short and it'll improve the naira to dollar speculation.
Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by Eagle360(m): 8:20am On Aug 23, 2023
Try and error government. Nigeria situation have defy any form of economies.
APC keep distributing poverty to all households.

3 Likes

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by ecolime(m): 8:20am On Aug 23, 2023
The Excess Crude Account (ECA) stood at $473,754.57.


shocked

Dem don chop the whole thing finish.

9 Likes

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by Liverpool456(m): 8:20am On Aug 23, 2023
Racoon:
What! Creating money scarcity to curb a double digit galloping inflation? Something that led to the untimely death of many people around the election period? Another disastrous policy. Abeg let the poor survive and breath. Bunch of assholes.
My brother quiet unfortunate.I can only beleive them if the supply is cut from entering their accounts.

5 Likes 1 Share

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by b3llo(m): 8:21am On Aug 23, 2023
Hmmmm.....
Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by BabaOfLagos: 8:21am On Aug 23, 2023
Reading
Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by pocom35: 8:21am On Aug 23, 2023
Ok..we have heard this before..
Meanwhile..these are the 10 heavily protected leaders in africa

https://www.youtube.com/watch?v=4oUi0NvwJAA

1 Like

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by zikter(m): 8:22am On Aug 23, 2023
What sort of recycling already failed policies is this? We in for it again

2 Likes

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by Asgard73: 8:22am On Aug 23, 2023
mrvitalis:
Like I said making a micro economist CBN governor and minister of finance is a tragedy waiting to happen

Buhari did same at least they were humble to accept they didn't know took time before taking decisions

Now we have a bad combination of arrogance and ignorant people as heads of our CBN and finance ministers


my solution
Cutting money supply would harm the already struggling businesses ...so what to so

Pump money into key manufacturing sectors as low interest loans 10% max give them 8 months before Tenure starts

Make sure they are in this two areas 1) import substitution products 2) exportable products produced at below international market price

This would marke goods available to match money supply dragging down inflation creating jobs and increasing revenue for government


Note when I mean pump in money I don't mean 50billion 😂😂

I mean 5 trillion minimum

50 years of Yoruba in government unopposed.. Nigerian will be dragging with Eritrea..

When you see people repeating same mistake with all boldness and are ready to defend the same failure

Four years like this with this policy.. I only piety those in ekiti Oyo Ondo

Thank God the illegal government won’t survive

7 Likes 1 Share

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by bashlek(m): 8:22am On Aug 23, 2023
Nigeria needs to ban hard currency for a short period of time to regulate the economy, if not some capitalists are ready to jeopardize their effort on reducing denomination. Nigeria trade hard currency than the west……What is happening to us ?

1 Like

Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by NOwazobia: 8:22am On Aug 23, 2023
Too much talk!


We need result!

sad
Re: Wale Edun: FG To Curb Rising Inflation With ‘Cut In Money Supply’ by kennyz247(m): 8:22am On Aug 23, 2023
story for the gods,we having been hearing all ds empty promises right from Buhari regime..

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