The explanation make sense.

But nigeria should less dependent on oil as the governor said.

The governor should also start doing something on it from his side.

let’s be honest other country prints money but they don’t waste it they let it go round

“If you understand the concept of printing of money, it is about lending money. There is no need for all the controversy around money printing as if we are going into the factory to print naira and then distribute on the streets,” the CBN governor said.

It is over, this debt na grandchildren and great grandchildren go feel am......Every country prints money but are your citizens feeling the results? Are you printing money to keep up with the wasteful spending of the government or are you printing money to invest in infrastructure, social welfare and income generation for the masses?

Who we dey deceive sef, we all know the 60 Billion na for stomach infrastructure....Abeg make una start to learn Chinese, country has been sold already

4Play:
It's depressing to see how uninformed some Nigerians can be in their bid to justify the indefensible.

Nigeria cannot afford to print money like developed economies because Nigeria's currency does not command the same respect/value as the dollar, euro, yen, sterling, etc. No one outside Nigeria, unless out of necessity, wishes to be paid in naira and arguably many Nigerians would prefer to hold forex like dollars or euro. We have seen our currency fall in value from $1 to 1 naira to $1 to 460 naira. In such an environment, printing more naira will cause the naira to depreciate further increasing inflation (look at the stories about the rising cost of goods).

It's in recognition of the damage to confidence that money printing can cause that prompted the finance minister to deny the claims.

If money printing was the panacea to our problems, we would easily solve poverty. The alarming thing is that money printing was normal during military rule (which is when the naira lost most of its value) but it doesn't seem to have dawned on many Nigerians that it was an abject failure and one of the reasons Nigeria is impoverished today.

So what's your solution?

oth

boogietrends:
There is nothing wrong in printing money especially when the country has a huge population to push the inflation over to. China did it, in fact China printed trillions to help build their economy and today they are better for it. If we have good economic managers in Nigeria, they should print trillions of naira to support infrastructure and not for recurrent expenditure.

It was shared as Covid Relief by way of loans, most likely 60% of the debtor do not know where that money is now.

Yes, many rich nations printed money based on one primary principle-that the economies were either going to suffer from deflation or that inflationary pressure was very low.

This means that if the printed cash enters the system, it does not turn inflationary, it does not lead to consumer price inflation . America and the EU both uses Quantitative Easing which involves the printing of money. Despite this, inflation is less than 2%.

Is Nigeria a candidate for printing cash? No. Inflation is already in double digits. Inflationary and inflationary pressures are already high so printing more money will simply make inflation worse.

The cash that Euro economies and America has printed, has it had any effect? It has led to asset price inflation. Prices of stocks, real estate, Bitcoin have all risen. Many billionaires got richer last year despite the pandemic. What do you think the cause what? The expansion in money supply

grandstar:
Yes, many rich nations printed money based on one primary principle-that the economies were either going to suffer from deflation or that inflationary pressure was very low.

This means that if the printed cash enters the system, it does not turn inflationary, it does not lead to consumer price inflation . America and the EU both uses Quantitative Easing which involves the printing of money. Despite this, inflation is less than 2%.

Is Nigeria a candidate for printing cash? No. Inflation is already in double digits. Inflationary and inflationary pressures are already high so printing more money will simply make inflation worse.

The cash that Euro economies and America has printed, has it had any effect? It has led to asset price inflation. Prices of stocks, real estate, Bitcoin have all risen. Many billionaires got richer last year despite the pandemic. What do you think the cause what? The expansion in money supply

The money isn't released to the system, it goes to corporations and institutions, this time is different because it's actually going into the system, people receiving actual checks which could put pressure on the cpi, referring to the us specifically

neyohh:


The money isn't released to the system, it goes to corporations and institutions, this time is different because it's actually going into the system, people receiving actual checks which could put pressure on the cpi, referring to the us specifically

But with inflationary pressures low, it may not stoke inflation.

This pandemic is a massive curse to any economy.

Golan007:


Good that you are cutting down on it.

You need to vary their diet.

Moin moin, macaroni, beans, yam pottage with spinach or even ugwu, yam and mackerel stew, eggs, eggy stew...etc.

Thanks for the tip bro. One love!

Timon4real:
Please, why do countries borrow instead of printing? Since printing is allowed to help stabilize economy and co.

countries borrow hard currency to pay for her foreign trade. the railway lines being built by the Chinese will be paid in dollars as they can't take out naira to their country.


countries also borrow locally through tbills and bond to finance that aspect that can be paid with local currency like wages.

printing is allowed only if the economy can absorb what is printed without creating excess in the system.

currently USA is awashed with so much money beyond what their economy can absorb but since their currency is used in foreign trade most of it will flow outward else hyperinflation

seunmsg:


Others printed money to stabilize their economy and we also did the same. What’s your point again?

have you stabilized our economy? What is our current inflation figures? You are mad

DSC7:


And how have the money printed helped to stabilize our fluctuating economy?...

Maybe it could have been worse without printed money, you have zero clue, Nigeria is not immune to pandemic-related global economic slowdown.

plaindealer:


Maybe it could have been worse without printed money, you have zero clue, Nigeria is not immune to pandemic-related global economic slowdown.

It would definitely have been worse if CBN didn't step in. As Emefiele said, doing nothing was not an option. Doing something even with some side effects will have an overall positive impact.

If nothing was done, how will the FG and state govts have funded the budget related to local currency e.g paying salaries, paying local contractors, funding social investment etc? Even if I disagree, this govt has tried to keep paying workers salaries and helping states do the same. Not aware there has been workers retrenchment. That helps considering the number of families that would have entered the already bad unemployment market.

Solution is to keep improving productivity of the average Nigerian. Solving the security problem is the immediate most important thing to allow farmers and other critical sectors return to their trades and boost output, bringing down prices. Next is to support our local manufacturers and industrialists by prioritising their forex needs to be able to put life back in the system, create employment and increase productivity. Last (by no means least) is to reduce our dependence on imports that gulp our scarce forex by refining our crude locally, keep discouraging huge imports of stuff like rice and other commodities that can be produced locally etc. Govt should block wastages and reduce corruption by been serious about its anti corruption fight, which is an area I think they have done very little

SarkinYarki:


Buhari govt remains the very worst govt and there is nothing you can do about it

the guy force you to speak out your best common language you understand and sweets you most.

but is it not the revenue secured for previous month that shuld be shared?if nothing comes in.shuld it not be zero allocation?why printing what culd av no value?or do we say the revenue was spent by centre.....,?

He is not an igbo man. Why so much bigotry.
The same Obaseki that instigated this and the CBN governor are both niger deltans.

Abeg Learn to think with ur head and not emotions

boogietrends:
There is nothing wrong in printing money especially when the country has a huge population to push the inflation over to. China did it, in fact China printed trillions to help build their economy and today they are better for it. If we have good economic managers in Nigeria, they should print trillions of naira to support infrastructure and not for recurrent expenditure.

The bolded says it....

boogietrends:
There is nothing wrong in printing money especially when the country has a huge population to push the inflation over to. China did it, in fact China printed trillions to help build their economy and today they are better for it. If we have good economic managers in Nigeria, they should print trillions of naira to support infrastructure and not for recurrent expenditure.

Point of correction: China industrialised to build their economy.

On what pivot did Nigeria print money? Is it not to be shared by states for their recurrent expenditures?

other states are generating large IGR to augment the ones given to them by the FG.
obaseki is like an insolent child who always put up an attitude if money is not shared or given to him

shadeyinka:

Point of correction: China industrialised to build their economy.

On what pivot did Nigeria print money? Is it not to be shared by states for their recurrent expenditures?

You don't have to be industrialized to print money for anything, without sharing printed money even for recurrent expenditure, you end up with less money in the economy , it means loss of jobs and total economic collapse.

The folks in charge are not dumb or foolish regardless how much you hate them or the government in general, they are economists and bankers, they play with numbers and analyse the economy 24/7, that's their job.

You are not an economist or a banker, you don't have access to the economic data or analysis so your opinion is just an opinion, nothing more, nothing to be taken seriously.

seunmsg:


Others printed money to stabilize their economy and we also did the same. What’s your point again?

The point is why deny it in the first place if there was nothing fishy ?

Is it to prop up the propaganda that the government is doing well?

@Fregie001, please, I have a question. In the definition of money printing given in the writeup, it is stated that money printing is not always literal printing of money, that it's like a transfer. So, my question is, if that's so, wouldn't it cause a shortage of money in circulation if the governors withdraw the huge amount of money transferred to them and where would the money withdrawn be gotten from

It will lead to Inflation in the economy. Done when necessary ok.

GeneralPula:
If you watch money heist, you’ll see as dem dey print money for Bank of Spain..

Sure, all countries print money..

My own question be say... Why do government borrow money when theirs money printing machine?

plaindealer:



You don't have to be industrialized to print money for anything, without sharing printed money even for recurrent expenditure, you end up with less money in the economy , it means loss of jobs and total economic collapse.

The folks in charge are not dumb or foolish regardless how much you hate them or the government in general, they are economists and bankers, they play with numbers and analyse the economy 24/7, that's their job.

You are not an economist or a banker, you don't have access to the economic data or analysis so your opinion is just an opinion, nothing more, nothing to be taken seriously.

You said :" China printed money to boost their economy!". I disagree! China industrialised to build their economy.

The question of dumbness of our financial experts as tools in the hand of our government is revealed in this:

In the 70's, N1 was approximately $0.6. Five decades later N480 is approximately $1. Can you calculate how much percentage in devaluation of the Naira our financial experts have succeeded in our impoverishment?
. Now, in the same manner, compare the relative difference within the same six decades between the Pound Sterling and the Dollar. Tell me if the conclusion is still that our financial experts are no dummies!?

I may not have a degree in economics but the little I know tells me that money (paper) has to be backed by productivity to have any value. However, in the case of Nigeria, we keep on having inflow of money not worked for through crude oil exploitation. We therefore dilute our money every time we collect the oil money from the oil multinationals.

Common sense did not tell our financial experts that such monies should not be shared by the states for their recurrent expenditures but for acquiring economic assets that can generate monies in future.

Our economic experts thought that the best way the nation can get Naira to spend was to encourage everything we consume to be imported so that FIRS can go to the ports and collect import duties. They are happy they have Naira to give to the Government every month forgetting that they have effectively killed the manufacturing sector of the economy and also killed the Job market both from which income tax could acrew to the Government.

Now, our consumption has outweighed our money supply the so called financial experts are looking for shortcuts as usual instead of going back to the drawing board to address the problem of PRODUCTIVITY and less dependence on IMPORTATION!

Enough of "paper economics". The solution to the problem is far beyond adjusting fiscal and monetary policies.

I may not be a trained economist nor do I work in any bank but, it looks like an ordinary person like me understand the economy better than our learned financial experts with respect to Nigeria's economic woes!

fergie001:





Printing money does not necessarily look like this — sometimes, it’s just an alert

Andrew Bailey was appointed BoE governor in the heat of the pandemic, March 2020.


Jerome Powell, Fed chair, did not always agree with Donald Trump, but they made money available for Americans


Lagarde’s ECB had no choice but QE


After US, India has had the worst numbers with the coronavirus pandemic


What is good for Emefiele is good for Kganyago


Nana Akufo-Addo’s government also had to tap its central bank



The Cable

Nigerian govt will always do selective comparison

But will wi

Aflix:
@Fregie001, please, I have a question. In the definition of money printing given in the writeup, it is stated that money printing is not always literal printing of money, that it's like a transfer. So, my question is, if that's so, wouldn't it cause a shortage of money in circulation if the governors withdraw the huge amount of money transferred to them and where would the money withdrawn be gotten from

The account of the FG has been credited by Monies they don't own (free money). Such monies will be mopped back through the people through CBN policies eg higher taxes, etc. In other words, the money has been taken as a loan to be paid by the citizens without their consent.

The money will be taken from Banks compulsory Reserves in the CBN etc. Only when they exhaust such will they go into literal printing of money.

Our government is wicked
Our Financial experts are fraudulent

More suffering of Nigerians loading!

Obaseki should have rejected his state share as a good example/governor who doesn't love money.

Last last the system is scam..we work our lives out to produce things only for the ones on top to print one rubbish called money then use it to take all that we worked for..we should be exchanging food stuff now..you give me yam and I give you plantain.

Exclusive101:
Are u sure any member of your father's household is richer than I am. I am not your average NL lowlife. Na highlife me I de.

Rich people don't have time for nairaland tribalism bla bla bla. Everyone Ball at the highest level.

Na poor people carry tribalism and nairaland likes for head.

U just displayed how poor u are

GeneralPula:
If you watch money heist, you’ll see as dem dey print money for Bank of Spain..

Sure, all countries print money..

My own question be say... Why do government borrow money when theirs money printing machine?

Because the financial system of the world is run on debt
Currency is an illusion and it's backed by debt

Enceladus:
US didn't print money oga. The Central Bank has the capacity to give out digital non-existent bailout money in bonds that will payed back with interest in tax. What CBN did is total bullshit inflation is looming around the corner.

USA prints dollars bros