A former deputy governor of the Central Bank of Nigeria, CBN, and chief executive of CEPER, Mr. Obadiah Mailafia, has disclosed that 20 per cent of the currency circulating in the country is fake.
Mailafia, who made this known on Monday while delivering a lecture at the public hearing on the 2017 budget, said it would be impossible to bring down food prices with fake currency in circulation.
According to him, “twenty percent of currency circulating in Nigeria is fake; you can’t bring down food prices if you have fake currency circulating.”
Mailafia also stated that aside the foreign exchange crisis, the refusal of CBN to effectively regulate commercial banks contributed to the recession in the country.
His words, “I am a former deputy governor of CBN so when it comes to regulations, we could have done better.
“If you have recession, you have to open a situation room, where experts will be monitoring the economy daily. These experts will work to on ways to get the country out of the situation.”
The CEPER CEO advised the authorities to take concrete steps to prevent the naira from plunging “down forever”.
He warned that “naira will continue to plunge further until we are bold in economic policies, infrastructure and monitoring.
“This is where boldness in economic policy is needed. Though the current administration inherited recession, Nigerians expect them to tackle it. That was what the Obama administration did. We need stabilisation of the exchange rates.”
Mailafia, who disclosed that “Nigeria’s fall in grace started from the railway collapse”, advised that the budgetary process should be structured in a way that would ensure rapid economic recovery.
While delivering his speech at the public hearing for the 2017 budget, the Senate President, Bukola Saraki said that the public hearing is the first of its kind, adding that it is coming at a crucial stage.
He pointed out that the country is at a critical stage in its march to development hence the idea of the joint public hearing by both chambers of the National Assembly on the 2017 National Budget.
The Senate on its Twitter handle explained that the #BudgetHearing aims at making the National Budgeting process an all inclusive activity for Nigerians as well as create room for analysis, discourse and enlightenment on the basic recommendation and budget policies of the nation.
It added that the hearing will also shape discourse on fiscal, financial and economic assumptions used as basis in arriving at total estimated expenditure.
The social media posts stated that “The forum on #BudgetHearing will be used for the collation of views and positions with a view to making general Legislative contribution.
“The 2017 #BudgetHearing will provide a think tank and research base to help @nassnigeria in planning toward sustainable development. Importantly, the #BudgetHearing will entrench openness, transparency, accountability & effectiveness in the Legislative Budgeting process.”