Printing Money Indiscriminately, Governor Godwin Obaseki Only Advised Federal Government To Trend With Caution… by Mike O. Enahoro
I think H.E. Godwin Obaseki was only advising the team whose today’s main function is to print money indiscriminately to trend with caution when indeed, there are several alternative ways Nigeria can be bailed out from the APC inflicted economic crunch.
Of course, as usual, I will not join the bad wagons to embark on unnecessary and uniforming oozing of system heating depositions that add no value to the society. I will rather choose to add my voice to those calling on the Federal Government to do the needful and place Nigeria back on the right track.
Only a few days ago, the PDP National Vice Chairman in charge of South-South Nigeria, Chief Dan Orbih call on APC-led Federal Government to plead with PDP members to assist them with ideas to take Nigeria out from this 1984 situation that President Muhammadu Buhari returned Nigeria to in 2015. That, Governor Godwin Obaseki made himself available to assist with ideas is supposed to be a privilege to be immediately grabbed by the brainless managers of APC-led Federal Government. Instead to key into such an opportunity, the Minister of Finance resorted to lies of international measures.
The matter at hand is about printing money to support monthly allocations and other financial needs of the Federal Government, whether or not, the Federal Government is doing the right thing. If I were among those advising the Ministry of Finance headed by the Hon. Minister of Finance, Hajia Zainab Ahmed, rather than exposing her inadequacies in the public domain, I would have suggested to her to humble herself to seek professional advise from an Ex Investment Banker in the person of H.E. Governor Godwin Obaseki who in his opinion has offered the opportunity to provide very meaningful views that could take us out from the financial quagmire of APC-led Federal Government.
In our college days, we were thought that any unplanned printing of money brings about inflation and devaluation of currency leading to the total collapse of the economy. So, what has happened to this basic knowledge? Is it that, our Honourable Minister did not attend College or has forgotten this basic foundation of monetary policy? Painfully, the Governor of the Central Bank of Nigeria Mr. Emefiele has come to the defense of the ignoble action of the Federal Government saying, the CBN was lending money to the government to survive. If not that, the former Emir of Kano, Alhaji Sanusi Lamido has been forcefully made to close his mouth, by now, he would have since blasted both the Honorable Minister of Finance and the CBN Governor for failing the trust reposed on them by the Senate who cleared them to handle such exalted positions… But come oooh, is it that, Sanusi was only using his positions to oppress the Government? As ED in UBA, he was overdoing…as First Bank MD, he was challenging Soludo. As CBN Governor, he was even attacking his Boss. As Emir, he was overdoing… Now that he is supposed to be a vibrant Comrade, we no longer hear his voice? So, Gandollar was very correct…anyway, his matter is for another day.
Just to school, the brainless APC Federal Government a little, printing more money does not increase economic output rather, it only increases the amount of cash circulating in the economy. If more money is printed, consumers can demand more goods, but if firms have still the same amount of goods, they will respond by putting up prices. This means the cost of buying goods will increase. This will therefore be very detrimental to the masses who have no access to the more money printed and shared among themselves. It is also important to note that, printing money creates a sense of nervousness amongst both economists and the general public. It immediately conjures up memories of hyperinflation. If a government prints money faster than the growth of real output it reduces the value of money and this invariably causes inflation. Governments often resort to printing money when they cannot finance their borrowing by selling bonds. This hyperinflation can be extremely damaging to an economy. Let me leave it at this for now.
I think, therefore, the Executive Governor of Edo State was very magnanimous enough to air his professional opinion to the failing APC led Federal Government. Unfortunately, rather than grab the opportunity to find their road to Dennis Osadebe Avenue to formally seek a way out, the Honourable Minister decided to be exposing herself. What a shame…