This government inherited a dead horse that was seen standing but people didn’t know that it was dead – Soludo slams CBN Governor over economic decisions

Governor of Anambra state and former CBN Governor, Charles Soludo during an interview on Channels Television has discussed the depreciation of the naira under the current government. Soludo asserted that the administration led by Tinubu took charge of an already weakened economy.

He attributed this economic downturn to past transgressions against the apex bank’s establishment law, which prohibits deficit financing exceeding five percent of the previous year’s revenues. Soludo accused the former management of the Central Bank of Nigeria of unlawfully providing trillions in unsupported financing, disregarding the legal constraints in place.

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.”