Sanusi Blames the Depreciation of Naira on CBN’s Loan to the Buhari Administration

Former emir of Kano, Alhaji Lamido Sanusi, has blamed the depreciation of the naira on the massive Central Bank of Nigeria (CBN) loan to the defunct Buhari administration.

Sanusi, a former CBN Governor, also blamed the loan granted through way and means, triggers the inflationary trend in the economy.

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.

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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.