Tinubu inherited a dead economy - Soludo says

Tinubu inherited a dead economy

Anambra State Governor, Charles Soludo, has said that President Bola Tinubu’s administration has taken over a “dead economy” bequeathed by his predecessors.

The former governor of the Central Bank of Nigeria stated this on Channels TV’s Politics Today program on Thursday, November 23, while analyzing the decline of the naira under the new government.

Soludo said Tinubu’s administration inherited a dead economy before he took office.

He blamed this on past violations of the apex bank establishment law, which prohibits deficit financing above five percent of the previous year’s revenues.

He accused the CBN, under previous management, of illegally granting trillions in unsecured financing despite legal restrictions.

He said: “We have explicitly put in the law that the Federal Government cannot be granted more than five percent of the previous year’s real revenue. And the one thus granted must be withdrawn by the end of the year in which it was granted. And when the Federal Government does not retire, the Central Bank is prohibited by this law from advancing even further in ways and means. This was the 2007 Central Bank law.

“But all of us Nigerians have watched the CBN illegally and blatantly violate this law year after year and continue to print money. This is when the money advanced is not guaranteed by anything; you just credit the federal government with trillions of N4 trillion, N10 trillion, N15 trillion and we continue.

“I said this 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 it was dead. I think it’s important for Nigerians to understand this.”

Source: www.lindaikejisblog.com

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