THE Central Bank of Nigeria, CBN,in a statement made by its Governor Mallam Lamido Sanusi said that it would print money to save
the ailing banks in the country.
The Central Bank governors stated that the CBN does not require any appropriation by the National Assembly for it to lend money to the banks
as part of its statutory responsibilities, said as the lender of last resort, what it did was to create money in line with CBN Act which
gave it the power to create and lend money.
According to the central bank governor, The CEOs of the five banks were removed after their banks had undergone thorough examination by
examiners from the CBN and the NDIC, he also said that 11 other banks have been audited by the central bank of nigeria CBN.
Lamido Sanusi claims that the injection of 420 billion naira to save the banks was not a bailout but instead it was liquidity support which
was meant to get the banks back on their feet since a lot of the money borrowed from the banks would not be returned.
The CBN governor also expressed willingness to print naira to bail out any of the additional 11 audited banks which is discovered to be
ailing.
The printing of naira to bail out banks has got a lot of nigerians asking “Does the central bank of nigeria have the power to print naira to
replace that which was laundered and is still in use in the system.” That is a question we would leave the national assembly to decide.
