Dear Nairalanders,

I regret to inform you that the Central Bank of Nigeria printed an alarming quantity of money electronically in June 2023 (source).

They increased the supply of narrow money aka M1 - which includes cash and money in bank accounts that can be spent immediately, from ₦22.47 trillion to ₦24.49 trillion, which means they printed ₦2.03 trillion, increasing the narrow money supply by a whopping 9.03% in one month - June. 🙆‍♂️

They increased the supply of broad money M3, which includes all money in the country, from ₦55.8 trillion to ₦64.9 trillion, which means they printed ₦9.1 trillion naira, increasing broad money supply by 16.31%, in one month. In other words, what they printed in June is 16.31% of all the money that the CBN had printed since independence. 🙆‍♂️

What does this mean? According to the CBN itself, "there is excess money supply when the amount of money in circulation is higher than the level of total output of the economy. When money supply exceeds the level the economy can efficiently absorb, it dislodges the stability of the price system, leading to inflation or higher prices of goods."

It also impacts the exchange rate; when more of a currency is printed, each unit of the currency becomes less valuable. A source I spoke to said that he suspects that the government has borrowed more money from the CBN. Trillions of naira. Inflation is 📈, naira is 📉.

Wrong approach.

Even if they increase it by 10,000%, the prices of goods will more than increase proportionately after some time.

And those cut off from the extra money distribution or not directly connected to govt spendings get little from it thus remain poorer while prices skyrocket.

Jesus said, "the poor will always be with you" for a reason. Poverty is a relative phenomenon.

When you employ an incompetent daft unintelligent fellow at the helms of affairs because he speaks the same language with you, “REGRETS” will be the order of the day.


This is just Verse 1.

At last, the inflation will intensify. This is rudimentary destructive economics hence Nigerians should be asking the question. Why Now?

Seun just violated rule 1, he needs to chop one week's ban. This topic belongs to the business section, not politics.

Please post all threads in the right section, and don't derail threads by posting off-topic.

una never see anything yet. On his flaccid manhood you shall all stand

This increment will favour me and my family

God bless Nigeria

Long live Jagaban

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I'll return to modify this comment.

I'm particularly interested in reading comments from "Seunmsg" and "FreeStuffNg" on this issue. I want to see the kind of pitiable analysis they'll employ to explain this one away.

Tinubu's administration is a disaster

Today the exchange rate is 1USD to 834 Naira. This is the weakest since the history of Nigeria and it's seems to be degenerating irredeemably.

Most Petrol Stations are in Panic Mode because of speculations hence they are suspending sales. The few ones that are selling are now selling from 600 Naira and above per litre.

My heartfelt empathy to fixed and meagre salary earners especially couples.

This is barely 2 months after handover and Nigerians have started missing Buhari who clearly had nothing to offer. Now oga BAT is here with full package just under 2 months even the blind are seeing. My humble advise, fasten your seat belts we have just 3 years and 10months to decide except God intervenes.
It's really interesting to see that everyone is witnessing this both the people that campaigned and voted for the incumbent and the people that voted against them.

This news will favour me and my family

Maybe it's because it's hard to account for money in Nigeria.
Plenty of our money are not kept in bank so it's hard to control inflation the conventional way.

Na Favour!!!

I have always believed everybody will be better than Buhari.

I have always believed nobody will perform abysmally like Buhari

But in 2 months, Tinubu is also easy proving me wrong

😭😭😭😭

At last, the inflation will intensify. This is rudimentary destructive economics hence Nigerians should be asking the question. Why Now?

Isn't the normal practice to blame the IMF and world bank for the falling value of the naira?

Jagaban said during his campaign that "CBN will print more money and supply."

When asked again about the dollar rate he said "Nigerians will be paid in Naira."

Renewed hope indeed for all.

WTF!!! Make this agb#do man & his mandate no turn us into Zimbabwe 2.0 Woh...e be like d cluelessness wan pass d previous adminstration by outrageous proportions!

MadamExcellency:
At last, the inflation will intensify. This is rudimentary destructive economics hence Nigerians should be asking the question. Why Now?

How will increasing money supply intensify inflation?

Welcome to the economy of inflation

Nomatter how we try to hide the truth.
Things are really hard right now in Nigeria.

This is a WRONG decision.

Increasing more supply of currency into the economy further weakens the currency and continues to raise inflation.

It means too many money in circulation chasing fewer goods. The money will be worthless as the price of commodities will continue to sky rocket. (Let's hope we don't end up like Zimbabwe, where bread was sold for one billion).


To cushion inflation:
1-Raise interest rates.
2-Re-peg the naira to dollar.
3- Raise tariffs on imported goods that is produced locally.
4-Impose heavy Tax on big corporation and utilize the funds to support SMEs.
5-Use the susbsidy funds to assist Dangote kick start his refinery, let's begin refining locally ASAP, then after that focus on using future subsidy fund to fix the Nation's refinery.

Nigeria is headed for a financial armageddon if CBN continues this sort of backward policy.

This APC government will humble Nigerians... inflation go carry Nigerians do shege.

It's absolutely clear this Government is completely clueless on how to handle the National Economy.

In the heat of all this Economic crisis, they put a Mechanical Engineer as the acting CBN governor, they are currently sharing the ailing national wealth around NASS, the judiciary, proposing an 8K palliative plan to the masses- which is actually a looting channel and playing politics about the Cabinet. Forgetting the concept of Economics is non partisan.



Shege Pro Max loading

For now, His manhood is still strong enough for us to stand.