The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, has conceded that the central bank lacks a “magic wand” to address the current economic challenges facing Nigeria.

Following growing public outcry over the nation’s current economic situation and mounting pressure from stakeholders to turn the fortune around, the CBN has been caught in the mix. The apex bank’s attempts for years to change the economic trajectory with varying monetary policies failed.

In a speech delivered via email on Tuesday, as reported by Reuters, Cardoso highlighted the pressing issues of a depreciating naira, double-digit inflation projected to reach 30% in the near term, and a staggering N87 trillion debt.

“The CBN does not have a magic wand that can be waved at the current economic challenges,” he said.

The biting economic situation has resulted in a recent surge in borrowing by Nigerians. According to the CBN’s Economic Report for the second quarter of 2023, consumer credit, encompassing personal and retail loans, witnessed a notable 12.2% rise from N2.35 trillion in the first quarter to N2.64 trillion in the second quarter of the same year.

This translates to a substantial increase of N290 billion in the span of three months, specifically between April and June. As of June 2023, out of the total consumer credit of N2.64 trillion, personal loans constitute N1.92 trillion (72.9%), while retail loans account for N715.10 billion (27.1%).

But despite his acknowledgment, the CBN governor outlined the bank’s strategy to foster economic growth. He emphasized supporting emerging sectors through institutions and financial products, expanding financial inclusion, and rallying multilateral stakeholders to endorse government and private sector initiatives.

In a significant shift from previous practices, Cardoso revealed the central bank’s intention to withdraw from direct development financing interventions. He said the CBN aims to transition to more limited advisory roles that align with the government’s economic agenda.

“There is a need to pull the central bank back from direct development finance interventions into more limited advisory roles that support economic growth,” explained Cardoso.

This departure from direct intervention is a departure from the approach of Godwin Emefiele, the preceding governor of the CBN. Emefiele had maintained an artificially strong naira and pursued unorthodox monetary policies, providing liquidity to money markets through interventions and exceeding constitutional thresholds by offering loans to the federal government.

Emefiele’s direct funding of government interventions, particularly in sectors like agriculture, and loans through the Ways and Means Act, amounted to more than N23 trillion. For instance, the CBN said it released N1.079 trillion under the Anchor Borrowers Programme, out of which over N500 billion is due for repayment. The amount yet to be recovered by the apex bank represents about 52.39 percent of the total loans collected by farmers under the programme, according to the CBN.

Against this backdrop, the current CBN governor’s strategy aims to address concerns that the blending of monetary and fiscal policies has hampered the central bank’s ability to control inflation and manage foreign reserves effectively.

Former President Donald Trump’s Truth Social, touted as a major contender to big tech platforms, has faced financial setbacks since its launch, with the latest financial disclosure from Trump Media & Technology Group (TMTG) revealing a net loss of tens of millions of dollars.

According to Hollywood Reporter, Truth Social, and TMTG collectively reported $3.7 million in net sales, but the financial disclosure, derived from TMTG’s SPAC merger partner Digital World Acquisition Corp, suggests a concerning financial picture. When excluding the value of derivative liability, the company has experienced a loss of $60.5 million since its launch. However, including the value of the derivative liability, the loss stands at $31.5 million.

The financial situation has raised alarms, with TMTG’s independent registered public accounting firm expressing doubts about its ability to continue as a going concern.

The filing states, “as of June 30, 2023, and December 31, 2022, management has substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due, including liabilities related to promissory notes previously issued by TMTG,” and that “TMTG believes that it may be difficult to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World.”

As of June 30, 2023, and December 31, 2022, TMTG’s management expressed substantial doubt about having sufficient funds to meet liabilities, including those related to promissory notes. The filing indicates that raising additional funds through traditional financing sources may be difficult without material progress toward completing its merger with Digital World.

Read also: Investors Pull Out Almost $140 Million From Digital World, After Plans To Merge With Trump’s Truth Social

Originally valued at $875 million during the merger announcement, TMTG’s current valuation, as per Trump’s latest financial disclosure, places his controlling stake between $5-$25 million.

The filing also revealed changes in TMTG’s plans, notably the apparent shelving of its long-planned streaming video service. The company eliminated positions on March 1, 2023, significantly affecting TMTG’s streaming video on demand (SVOD) and infrastructure teams.

Trump announced the formation of TMTG in late 2021, positioning it as a competitor to major social media platforms. In May 2022, he agreed to make Truth Social his primary platform, adhering to a posting agreement. However, with the recent acquisition of Twitter by Elon Musk and Trump’s account reinstatement, the dynamics of the social media landscape have evolved.

The filing also outlines risks related to Trump’s ongoing legal challenges and business history, warning that there are no assurances that TMTG will avoid failure. Trump, as of October 30, has verbally affirmed his commitment to the agreement to make Truth Social his primary platform at least until the merger is complete.

Read also: Tech Issues, Legal Tussle And Financial Woes Putting The Future Of Trump’s Truth Social In Jeopardy

The uncertainty surrounding TMTG’s financial future remains contingent on the success of its merger and subsequent financial injections.

Nuhu Ribadu: no person said it was going to be easy. Your statement – “Yes, we’re facing budgetary constraints. It is okay for me to tell you. Fine, it is important for you to know that we inherited a difficult situation, literally a bankrupt country, no money, to a point where we can say that all the money we’re getting now, we’re paying back what was taken. It is serious!” – means nothng since we still want BIG foreign SUVS.

You do not balance your budget by telling your bank to print thinner cheque books! For national security, Nigeria needs economic security. You can bring sense into that conversation! Right now, we’re losing a generation who do not see a working future, and that is a national security challenge, and I challenge you to bring common sense through a mindset shift!

The conference, attended by key figures including the Minister of Defence, Abubakar Badaru; Minister of State, Bello Matawalle; Permanent Secretary in the Defense Ministry, Ibrahim Kana; and the Chief of Defence Staff, addressed crucial issues surrounding national security and defense.

Despite the pledge to navigate through financial constraints, questions have arisen about the continuity of fiscal responsibility within the present administration. Critics have pointed out the lavish spending patterns reminiscent of the previous regime. The focus has shifted to Bola Tinubu’s administration, alleging a parallel trajectory in financial management.

Nigeria’s former anti-corruption czar and National Security Adviser, Nuhu Ribadu, has criticized the immediate past administration of Muhammadu Buhari, accusing it of leaving the country in a dire financial state before leaving power in May.

Ribadu made these remarks during the Chief of Defence Intelligence Annual Conference 2023 held in Abuja, where he addressed leaders on the theme, “Leveraging Defence Diplomacy and Effective Regional Collaboration for Enhanced National Security.”

In his speech, Ribadu did not mince words, stating, “Yes, we’re facing budgetary constraints. It is okay for me to tell you. Fine, it is important for you to know that we inherited a difficult situation, literally a bankrupt country, no money, to a point where we can say that all the money we’re getting now, we’re paying back what was taken. It is serious!”

However, Ribadu reassured the audience that despite the financial challenges, the Federal Government was committed to ensuring robust and viable defense management and security apparatus. He asserted, “This administration is doing its best to meet our requirements, particularly the armed forces, and I believe that you leaders will be able to testify to that.”

“I assure you that the Federal Government will not rest on its laurels in ensuring a robust and viable defense management and security apparatus to address contemporary challenges even in the face of enormous budgetary constraints.”

The conference, attended by key figures including the Minister of Defence, Abubakar Badaru; Minister of State, Bello Matawalle; Permanent Secretary in the Defense Ministry, Ibrahim Kana; and the Chief of Defence Staff, addressed crucial issues surrounding national security and defense.

Despite the pledge to navigate through financial constraints, questions have arisen about the continuity of fiscal responsibility within the present administration. Critics have pointed out the lavish spending patterns reminiscent of the previous regime. The focus has shifted to Bola Tinubu’s administration, alleging a parallel trajectory in financial management.

In September, reports surfaced that Tinubu spent over $500,000 during a luxurious five-day stay in a New York hotel. Furthermore, there are concerns about the president’s proposed expenditure of N13.5 billion ($16.2 million) for the renovation of official residences in Abuja and Lagos. Critics argue that this is an unnecessary allocation given the existing presidential mansion in Lagos, which is rarely used.

The supplementary budget of N2.17 trillion (about $5 billion) has drawn attention, particularly for including N1.5 billion for vehicles for the Office of the First Lady, an entity not constitutionally recognized. The budget also originally featured a controversial N5 billion yacht, which faced public backlash, leading the National Assembly to remove it from the allocation.

Additional allocations in the supplementary budget include N2.9 billion for Sport Utility Vehicles (SUVs) for the Presidential Villa and another N2.9 billion for replacing operational vehicles for the presidency.

Renovations of the presidential and vice-presidential residences are also planned, with N4 billion designated for the president’s residence and N2.5 billion for the vice president’s residence. The proposed State House budget is N28 billion, with N12.5 billion allocated for the Presidential Air Fleet.