In a recent appearance on Channels TV’s Politics Today, Anambra State Governor Charles Soludo delivered scathing remarks regarding the current state of Nigeria’s economy under President Bola Tinubu’s administration.
The former Central Bank governor didn’t mince words, stating that the present government had taken over what he described as a “dead economy” from its predecessors.
During the interview, Soludo highlighted the decline of the naira and attributed it to past violations of the Central Bank of Nigeria’s establishment law. He emphasized that the law prohibited deficit financing above five percent of the prior year’s revenues.
However, he accused past CBN management of illegally granting trillions in unbacked financing, disregarding these legal restrictions.
He explicitly referred to the Central Bank Act of 2007, which imposed strict limits on the amount of funds the Federal Government could receive from the CBN, stressing that any sum granted had to be repaid by the end of the fiscal year.
Soludo pointed out the alarming trend of the CBN consistently flouting this law, printing money without adequate backing, and extending enormous credits to the government, ranging from trillions like N4 trillion, N10 trillion, and even N15 trillion.
The governor emphasized,
“This particular government inherited a dead economy from a microeconomic point of view, this government inherited a dead horse that was seen standing but people didn’t know that it was dead. I think it’s important for Nigerians to understand this.”