We won’t allow CBN to print money, says Budget Minister
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We won’t allow CBN to print money, says Budget Minister

Amidst the financial challenges affecting the 2024 national budget, the Federal Government (FG) has announced its decision to cease the Central Bank of Nigeria (CBN) from resorting to money printing through Ways and Means to bridge the budget deficit. The Minister of Budget and National Planning, Atiku Bagudu, revealed during a conversation with journalists in Lagos that the government intends to shift towards issuing bonds. This approach, he emphasized, would not only adhere to legal limits but also attract private investments.

Bagudu clarified, “The central bank is no longer authorized to print money for the government. If we consider borrowing from the Central Bank, it will strictly adhere to the legal allowance.” He highlighted that the law permits borrowing up to 5% of the previous year’s revenue, and any borrowing within this limit would be in compliance with regulations. In cases of necessary borrowing, the government plans to issue bonds, creating an opportunity for private investors to engage in government bonds.

The 2024 budget projected a deficit of N9.2 trillion, approximately 3.9% of the GDP. However, the National Assembly altered figures in key revenue lines, anticipating higher oil revenue and exchange rate gains than initially budgeted by the Federal Executive Council. Bagudu acknowledged this adjustment, stating, “We chose democracy, and democracy has opportunity cost.”

He explained that despite the already high national debt, certain essential expenditures, such as education and addressing security challenges, cannot be postponed. Bagudu pointed out the need for an “irreducible minimum” spending, acknowledging the country’s revenue challenges and emphasizing the importance of meeting crucial commitments. He cited the global context, noting that many countries collect a significant percentage of their GDP as revenue, contrasting Nigeria’s comparatively lower revenue collection in the past.

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