20% of Nigeria's money in circulation is fake – Mailafia, Ex-deputy CBN governor
- A former deputy governor of the Central Bank of Nigeria said the country has a total of twenty percent fake currency in different denomination in circulation
- Dr Obadiah Mailafia said this while presenting a paper at the opening of a 3-day budget public hearing at the National Assembly on January 13.
- He said that the presence of ‘bad’ money of such ‘magnitude’ will chase away the good ones.
Dr Obadiah Mailafia, a former deputy governor of the Central Bank of Nigeria (CBN) said Nigeria has a total of twenty percent fake currency in different denomination circulating in the country.
Mailafia said this while presenting a paper at the opening of a 3-day budget public hearing at the National Assembly on January 13.
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According to him, the situation has serious implications on the country’s economy.
The former CBN deputy governor in a paper titled ‘Public Finance in the Context of Economic Recession: Innovative Options,’ said the authorities concerned failed to take the situation seriously.
Going further, he noted that the presence of ‘bad’ money of such ‘magnitude’ will chase away the good ones.
“When fake currencies of that magnitude circulate, original currencies become scarce. Bad money chases away good money,” he said, adding that fake money would cause great injury to the country’s economy in future if no concrete action was taken,” he said.
He however noted that the current economic recession facing the country was caused by several factors which include drastic fall in global oil prices, dwindling foreign reserves, poor banking practices, stock market crisis, speculations among others.
He consequently encouraged the Buhari led administration not to make any attempt in increasing interest rate because “it would further compound the hardship Nigerians are facing.”
He further asked the government to strive and ensure prompt payment of taxes by every tax payer.
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The National Assembly meanwhile observed that there is lopsidedness in the 2017 budget proposal currently before it.
But according to chairman of the Senate Committee on Appropriation, Senator Danjuma Goje, all areas of lopsidedness would be addressed.
He did not however state the areas of lopsidedness.
In his remarks, Senate President Bukola Saraki insisted that by engaging critical stakeholders and members of the general public to make input into the 2017 budget, the National Assembly hoped to increase the efficiency of government and its responsiveness to citizens needs as well as improve overall transparency and accountability in governance.
Meanwhile, the educative video below tells you everything you need to know about the emergence of Nigeria Naira note.
Source: Legit.ng
