Dear Nairalanders, most of us might have gotten so many thoughts on this same question maybe because I am computer scientist without economist knowledge of self thinking to this nature of thought. if a country like ours called Nigeria is entitled to have a central bank called CBN why can't we print all the available money needed to finance all our project than borrowing outside ?or does it mean money are not printed in Nigeria that's is why we are not meant to do it alone than higher nation wanting to give authority to such. . .

Printing more doesn’t make a country or her citizens richer, it just reduce the value of goods and services.

Well, I studied CSC too so my explanation might be cut and join but lemme explain the best way I can.

The major disadvantage when it comes to printing money like the case of Venezuela and Zimbabwe (you can read about them) is that it makes money lose its value. Since the production of money doesn’t lead to the existence of unknown goods and services, then what’s the essence? INFLATION!!

If the central bank chooses to print x3 of their money, this will result in tripling the price of goods and services. Since there’s enough money to go round, the value of money will decline and it won’t get you what normally you get with the same amount of money.

Illustration of how this work in real world

Let’s assume we have just three individuals in a nation with three different levels of wealth 100, 200 and 300 dollars respectively. Additionally, there’s only one commodity in the nation which they can purchase with their wealth equally the total of $600.

Let’s assume the commodity is brand and it amounts to 60kg in total. Thus, their whole wealth and the total amount of the commodity will be (600/60). With their respective money, the first person can only purchase 10kg, while the second individual 20kg et al.

Couple of weeks down the lane, they got connected to a device that prints money and they decided to increase their money x2. Having done that, they now have $200, $400 and $600 respectively. Increasing their wealth to $1200 however the total amount of commodities is still the same (60kg).

Unlike the previous price, the new amount of rice will be 1200/60; pegging it at the rate of $20 per kg. They went to the market to purchase the same commodity only to find out that they’re a belt to buy the same amount of commodity, but this time at double the rate.

As you can see, printing more money doesn’t help a country if the volume of goods doesn’t increase. It will only result in devaluation of the country’s currency. The only feasible solution is to increase the level of productivity, unfortunately we don’t produce much in this country. I hope this helps.

Trying to imagine what was running through Op`s mind before coming about this thoughts, and all I can do is just laugh

Op wants us to print equivalent of $1 million for each Nigerian