The federal government cannot become naira insolvent -APC national leader Asiwaju Bola Ahmed
March. 29, 2020
To buttress his points, he referenced the recent $2.2 trillion package designed to save its economy passed by U.S Congress and signed by President Donald Trump. Tinubu disclosed in his 68th birthday message.
“While individuals, companies and even state governments can go bankrupt during hard times, the federal government cannot become naira insolvent because it has the ability to issue our national currency.
He who holds the printing press is never insolvent. “The most serious concern and limitation on federal naira spending is not insolvency but inflation. Consequently, should circumstances require increased spending, we should not hesitate to do so; but we must keep the watchful eye to ensure inflation does not climb too high. “However to save both lives and livelihoods during a moment of historic emergency, a touch of extra inflation from enhanced government spending is a small price to pay. In fact, it is a price that must be paid," he said.