For weeks now, citizens have been crying out for the federal government to make bank transfers to them via BVN so they can cope with hardship during the lockdown period. Here is why it won't work. The federal gov isernment doesn't have the ability to pay citizens via BVN . They can only do that via Hyper quantitative Ease or Modern monetary Theme ( MMT) . Even if they do that, we will like receive 2000 naira instead of 20k because they will be forced to print huge amounts of currency notes and they won't stop printing and printing unlimited money is wasteful and will lead to total devaluation of the Naira. Zimbabwe tried this and we became billionaires in dollars . Quantitative Easing is good to stimulate the economy but when you use it to fund a budget for an unstable currency , it can cause many problems.
Besides , 70 percent of our budgets is used in debt servicingGiving the federal government keys to print as much as currency notes as possible is not advisable because you might get the 20 k , but in 12 months , the money will be less than 5k
.. Since 2018, Nigeria didn't take trade serious and open the economy . If we do this now, we will run out of money and start begging for funds from the International Monetary Fund. so that's why the government can't pay through BVN , instead they should provide foodstuff and basic necessities for citizens in lockdown.
From Abiyenews
0 Comments