for example, in the case of an economic or health crisis, or with the aim of raising money outside taxation, printing money cautiously is not entirely wrong. During the COVID-19 pandemic last year, the United States printed over $3 trillion, while the United Kingdom printed more than £875 billion.
These two advanced economies used the newly minted money to buy up government debt, keep interest rates low and tame inflation. In Nigeria, on the other hand, the money was invested in the government’s recurrent expenditures and maintenance of loans. Other concerns include the possibility hyperinflation on account of the inflow of cash, as well as increased pressure on the naira since Nigeria is an import-dependant country. Therefore as the government continues to print money faster than the actual GDP growth, the naira is bound to depreciate. Here, one may recall to mind how Zimbabwe became enmeshed in a deep financial crisis after the government printed money at a rate faster than the growth in real GDP.
Therefore, experts call on Abuja to embrace true federalism. While the independence will increase competitiveness and give rise to innovation, while remitting a monthly revenue to the federal government. Moreover, the urge the government to slash bogus spending and boost revenue from diverse sources such as agriculture, minerals and technology.
