romeorailss:
I need economic students to explain why Nigeria cannot print naira to pay off its debt . What is the implication of a country printing money to carry out functions

It is the irresponsible printing of trillions of extra naira notes backed by NOTHING that got us into the hyperinflation we are suffering. Thus, making the naira a worthless piece of paper compared to other currencies.

RepoMan007:
they could actually print naira and buy remittances aggressively before paying debts but that will flood the local economy with so much Naira that isn't backed by real goods or valuables. The end will be inflation.

I think the above is better than paying idle and unproductive work forces which is like exchanging the printed money for less or almost nothing anyways.

But how is it flowing into the local economy . Remeber we are paying external debt . Ok I get it , since we cannot pay in Naira , that's why ?

Also , how does having too much naira in circulation leads to inflation, have you forgotten that the citizens must work to earn it ? Because government prints more does not mean the citizens will get naira without working for it

9jatriot:


I can understand you as a lay man asking this kind of question but when emiefele as CBN governor who is supposed to laugh so hard at this kind of suggestion went ahead to be printing money indiscriminately, you know there is real wahala.

When Obaseki first mentioned that Nigeria was just printing money upanda, I thought he was just playing opposition politics. A CBN governor should not be doing something that foolish.

Op, now to your question, they say you do not tell a blind man that the rain is falling. This high cost you are seeing now, most of it is from when a whole CBN governor who should know better decided to go on a printing gallow. With too much cash in circulation without a corresponding increase in production, there will be more cash chasing the same quantity of goods which will lead to higher cost and increased inflation. That is where we are now.

Also, most of our loans are in USD which Nigeria cannot just use a HP laser printer to print, the way we are able to print naira, Instead, we will need to work our ass out to earn the USD which we can then use to offset those debts you are talking about.

Questions like these are good, it helps all of us to learn. I also did ask this question at some stage also

I have a clearer understanding with your answer . Thanks

Birdbyrde440:

With all due respect I really really need to know, Did you graduate from university?

No , I just graduated from kindergarten. Mr KnowAll