The Governor of Anambra State, Charles Soludo, has asserted that upon assuming office, President Bola Tinubu’s administration was faced with an ailing economy left by its predecessors.
In an interview on Channels TV’s Politics Today, Soludo highlighted the decline of the naira under the new government.
He attributed worsening economic indicators to past infringements of the apex bank’s establishment law, specifically pointing out violations restricting deficit financing to five percent of previous year revenues.
The former Central Bank of Nigeria chief accused the CBN’s past management of unlawfully providing trillions in unsecured financing, contrary to legal limitations, which, in his view, significantly contributed to the current economic challenges.
From a macroeconomic perspective, Soludo argued that the Tinubu regime inherited an economy that was already deemed irreparable before assuming office.
Soludo contended that, from a macroeconomic perspective, the Tinubu administration had inherited an economy that was deemed irreparable even before it took office.
He said, “We explicitly put into the law that you can’t grant the Federal Government more than five per cent of the previous year’s actual revenue. And that so granted must be retired by the end of the year in which it was granted. And when the Federal Government fails to retire, the Central Bank is forbidden by that law from further advancing ways and means. That was the law 2007 Act of the Central Bank.
“But we sat all of us Nigerians watching the CBN illegally and brazenly violating that Act year on year and kept on printing money. That is when advance money is backed by nothing; you just credit the Federal Government with trillions N 4 trillion, N10 trillion, N15 trillion and we keep going.
“I said it before. 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.”
