From Premium Times Nigeria · Mariya Shuaibu Suleiman · · 2m
Oyedele links N30tn monetary financing to Nigeria’s inflation pressures
Finance minister ties N30tn in monetary financing to Nigeria’s inflation pressures.
In brief
Finance minister ties N30tn in monetary financing to Nigeria’s inflation pressures. Nigeria’s finance minister says excessive money creation and petrol subsidies caused inflation to reach 14.63% in September, but reforms averted a 1,000% spike. Originally reported by Premium Times Nigeria.
Finance minister links N30tn to inflation
Finance minister Taiwo Oyedele says N30tn in monetary financing caused Nigeria’s inflation pressures.
Inflation rate eased to 14.63%
Nigeria’s annual inflation rate fell to 14.63% in September from 15.39% in August.
Inflation could reach 1,000% without reforms
Oyedele claims inflation could have reached 1,000% without economic reforms introduced by President Tinubu’s administration.
Petrol subsidy removal caused inflation
The removal of petrol subsidies and foreign exchange reforms increased transport and logistics costs for households.
N30tn figure explained
Oyedele states that N30tn in monetary financing contributed to the current inflation rate, but does not provide calculations.
Government focuses on income growth
Oyedele says the government is prioritizing income growth over price suppression to address inflation.
Food inflation edged up slightly
Annual food inflation rose to 19.59% in September from 19.57% in August, showing food prices remain a concern.
Government spent twice on salaries
The Federal Government spent twice the amount saved from petrol subsidy removal on salary adjustments and wage awards.
National ID system improves transfers
The government improved beneficiary identification through the National Identification Number system for cash transfers.
World Bank acknowledges progress
The World Bank acknowledged progress in reaching vulnerable households but rejected publishing beneficiaries’ personal details.
2022 financial statements audited
The Federal Government completed the audit of its 2022 financial statements and pledged to bring outstanding accounts up to date by Q1 2027.
National economic policy framework
The ministry of finance signed a memorandum of understanding with the Central Bank of Nigeria to strengthen cooperation.
Inflationary effects take time
Oyedele argues that the inflationary effects of excessive money creation could take time to emerge.
What happens next
The government plans to publish audited accounts within six months of each financial year’s end and implement a national economic policy framework.
The main idea
Nigeria’s finance minister says excessive money creation and petrol subsidies caused inflation to reach 14.63% in September, but reforms averted a 1,000% spike.
