Former Emir of Kano, Muhammad Sanusi, has revealed how the Central Bank of Nigeria (CBN) weakened the naira.
Sanusi stated that the CBN’s lending to the federal government under the administration of former President Muhammadu Buhari, through ways and means, triggered inflationary pressure in Nigeria, resulting in the depreciation of the Naira’s value.
Speaking at MTN Capital Markets Day on Tuesday, Sanusi pointed out that the CBN had engaged in aggressive monetary tightening using various liquidity control instruments, including open market operations, Open Buy Back (OBB), and 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.
