The former Emir of Kano, Muhammad Sanusi, has exposed how the Central Bank of Nigeria (CBN) weakened the naira.
Sanusi argued that the CBN’s financing of the federal government under the administration of former President Muhammadu Buhari, through ways and means, caused inflationary pressure in Nigeria, resulting in the depreciation of the naira’s value.
Sanusi made this remark during his speech at MTN Capital Markets Day on Tuesday when he discussed the CBN’s vigorous monetary tightening through open market operations, Open Buy Back (OBB), and high T-bill rates, among other liquidity control tools.
He elaborated on how these actions demonstrated the central bank’s dedication to its primary mission of preserving the financial system’s stability and reining in inflation.
In the near term, at least, I have a positive outlook. Over the past eight years, the central bank’s balance sheet has grown rapidly through many channels.
And that has contributed to rising prices and a depreciating currency. It’s a proven reality, he emphasized.