Isa Yuguda, a former governor of Bauchi State, has said that President Bola Ahmed Tinubu took over an economy that was difficult and had seen the printing and circulation of almost N33 trillion. He pointed out that the banks held a substantial share of the money in circulation, which made the economic problems worse.CONTINUE FULL READING>>>>>
He argued that the Central Bank under the previous administration had become weak, functioning more as an operator than a regulator. He praised Tinubu for his determination in addressing these issues and stabilizing the economy, despite the daunting circumstances. He emphasized the complexity of the inherited economic situation, expressing doubt that anyone else could have managed it better.
He said in an interview with Arise TV, ”These are problems that were inherited. He (Tinubu) inherited an economy where over N33Trn was printed and offloaded into the economy. And this money is not productive. It’s a money circulating to pursue the foreign dollar in the market. Not only that, the Central Bank was very weak and is no longer a regulator but an operator. And for him to be able to confront that with determination and at least bring us to where we are, you have to give kudos to him.
Because any other person who would have met that situation, I don’t know if he’s going to handle it better. When you are talking about interest rates, they are determined by the Central Bank Monetary policy but the fact is that interest rates are also a function of demand and supply of money in the money market. If you have sufficient liquidity within the banking system, banks don’t have to go looking for money to borrow at a high cost to maintain their positions. And this is a situation where you have the bulk of the monies that are in circulations trapped in the banks.”CONTINUE FULL READING>>>>>