How CBN devalued Naira – Lamido Sanusi

The ex-Emir of Kano, Muhammad Sanusi, has disclosed how the Central Bank of Nigeria (CBN) contributed to the devaluation of the naira. Sanusi explained that the CBN’s lending to the federal government during the tenure of former President Muhammadu Buhari, through means and ways, led to inflationary pressures in Nigeria, ultimately causing the depreciation of the Naira.

During the MTN Capital Markets Day on Tuesday, Sanusi highlighted that the CBN employed forceful monetary tightening strategies, employing various liquidity control measures like open market operations, Open Buy Back (OBB), and maintaining high T-bills rates.

He explained that these measures indicated the apex bank’s commitment to its core mandate of maintaining financial system stability and controlling inflation.

“I am optimistic, especially in the short term. We’ve had eight years of rapid expansion of the central bank’s balance sheet through ways and means.

“And that has fueled inflation and weakened the currency. And that is a fact,” he said.