Printing excess money can contribute to inflation, especially if it significantly exceeds the growth of the economy's output. When a government prints money without a corresponding increase in goods and services, it can lead to an increase in demand without a matching supply, causing prices to rise.

In the case of Nigeria printing 1.5 quadrillion naira (equivalent to 1 trillion dollars), several outcomes could occur:

1. Hyperinflation: If the quantity of money in circulation drastically increases without corresponding economic growth, Nigeria could face hyperinflation. This phenomenon has been observed in countries like Zimbabwe and Venezuela, where printing excessive amounts of money led to prices spiraling out of control.

2. Currency Devaluation: The value of the naira could fall significantly against other currencies. With such an increase in the money supply, confidence in the currency could decline, leading to devaluation and making imports more expensive.

3. Loss of Credibility: Printing such a large amount of money could damage the credibility of the Central Bank of Nigeria and the government. If investors and ordinary citizens believe that the government is irresponsibly managing its monetary policy, it could lead to reduced investment and economic instability.

4. Economic Disruption: Inflation can erode purchasing power, leading to a decline in living standards. Individuals and businesses may struggle to plan for the future if prices become volatile and unpredictable.

5. Potential Short-Term Stimulus In some cases, a temporary increase in the money supply can stimulate economic activity, particularly if the economy is in a recession. However, this is usually only effective in the short term and can lead to the longer-term issues mentioned above.

In summary, printing 1.5 quadrillion naira without corresponding economic growth would likely lead to severe inflationary pressures and potentially destabilize the Nigerian economy. The consequences could be dire, affecting everything from currency value to the standard of living. Authorities typically use more responsible economic measures to stimulate growth, such as fiscal policy adjustments and targeted economic investments. The central bank needs to make the country grow naturally by diversifying the economy from one area , good infrastructure and technological development.

Is Nigeria planning to print 1.5 quadrillion naira in this age of digital money?

budaatum:
Is Nigeria planning to print 1.5 quadrillion naira in this age of digital money?

I saw a post about CBN governor saying that Nigeria GDP will grow over a trillion dollars equivalent to 1.5 quadrillion naira . The economy should grow naturally not printing excessive cash.

Alphabyte3:


I saw a post about CBN governor saying that Nigeria GDP will grow over a trillion dollars equivalent to 1.5 quadrillion naira . The economy should grow naturally not printing excessive cash.

What you saw the CBN saying does not mean they will print 1.5 quadrillion naira, lol.

If the do that, we'd need a wheel barrow to carry the naira to buy a loaf of bread, as the rest of your post rightly pointed out.

Sounds like some future goal. Like one of those things I project we'd achieve in 3024.

https://nairametrics.com/2024/05/28/nigerias-gdp-falls-farther-from-tinubus-1-trillion-economy-dream-on-weak-naira-low-growth/

budaatum:


What you saw the CBN saying does not mean they will print 1.5 quadrillion naira, lol.

If the do that, we'd need a wheel barrow to carry the naira to buy a loaf of bread, as the rest of your post rightly pointed out.

It is not even possible for Nigeria spending to hit $500bn this year because our currency has devalue. Developed countries interest rates are below 5% . Citizen of such countries has access to loans , mortgages and certain privilege. Spending increases when the economy is buoyant.

budaatum:
Sounds like some future goal. Like one of those things I project we'd achieve in 3024.

https://nairametrics.com/2024/05/28/nigerias-gdp-falls-farther-from-tinubus-1-trillion-economy-dream-on-weak-naira-low-growth/

NGX can't even generate $1T . Maybe in the future i think they should copy China and United States

Alphabyte3:


NGX can't even generate $1T . Maybe in the future i think they should copy China and United States

Please, what aspects of China and United States would you propose we copy?

Nb. I just posted the below.

budaatum:


The return of Made in America.

Each governor should start it's own Startups incubator like Lagos which is like the silicon valley of Africa. Each state should focus on industrialization and listing in stock exchange 18 years old should be taught about finance market. Federal government should also create like more universities for the youth
. NGX group should increase the margin for futures trading. South Africa is about 1.23 trillions dollars Market capitalization while Nigeria is less than 40 Billion dollars so awful.