₦airaland Forum

As we all know the Apex Bank; i.e Central Bank of Nigeria is the one in charge of printing and regulating money. Why is it that we still borrow and complain of money in this country despite the fact that we can print more than enough? Please I need concise reply. Thanks

Op, there is something called Inflation. Simply means too much money purchasing fewer goods.

If I start explaining, u will be bored to read it.

olaleks007:
Op, there is something called Inflation. Simply means too much money purchasing fewer goods.

If I start explaining, u will be bored to read it.

Pls explain sir

Lukgaf:
Pls explain sir

Nigeria is suffering from inflation at the moment. There is a certain amount of money that suppose to be in circulation. If the amount of money in circulation is more than, there will be much money in circulation thereby making goods expensive.

CBN control the money in circulation and they can only measure this by calculating the money in all d banks. They can't calculate the money people have at hand or the money some people kept in the homes or buried. So when this money start getting out and people start depositing it in bank, CBN will realise that the money in circulation is over, So what they do is they will increase the tax on goods and the manufacturers of the goods will increase the market price to meet up with the tax payment. That's when u will notice a product sold of an amount before now double in price. Too much money purchasing fewer goods. This doesn't help the economy of the country at all because there currency lose value. That's why cashless policy comes up. CBN believed with cashless policy, people will be able to take money to the bank and stop using cash.