In a recent speech at the Annual Dinner of the Edo Zone Bankers Committee in Benin City, Governor Godwin Obaseki of Edo State criticized the Central Bank of Nigeria’s decision to raise the Monetary Policy Rate (MPR) to 22.75 per cent. Obaseki, speaking passionately in a video shared on his official X account, argued that this move would not alleviate the economic hardships facing the country, exacerbated by soaring inflation.
The governor stressed the importance of focusing on production as a fundamental solution to economic challenges. He emphasized the need for Nigeria to prioritize increasing domestic production and reducing dependence on imports. Obaseki highlighted the interconnected nature of fiscal and monetary policies, asserting that both must work in tandem to drive economic growth.
While acknowledging the monetary rationale behind the MPR increase, Obaseki cautioned against overreliance on exchange rate adjustments and tightening liquidity measures. He urged a holistic approach that prioritizes job creation and economic growth within the country, rather than solely focusing on foreign exchange concerns.
Obaseki’s remarks come in response to the CBN MPC’s decision to raise the benchmark interest rate by 400 basis points, citing a need to address the country’s high inflation rate of 29.90 per cent. However, Obaseki’s perspective underscores the importance of a balanced approach that considers both fiscal and monetary policies in navigating economic challenges.
As Nigeria grapples with economic uncertainties, Obaseki’s call to prioritize domestic production and job creation resonates as a key strategy for sustainable growth. By focusing on building a resilient economy from within, Obaseki advocates for a shift towards long-term solutions that empower Nigerian citizens and reduce reliance on external factors.
In conclusion, Governor Obaseki’s critique of the CBN’s monetary policy decisions serves as a reminder of the complex interplay between fiscal and monetary policies in shaping Nigeria’s economic landscape. His call for a holistic approach that prioritizes domestic production and job creation offers a compelling vision for steering the country towards a more sustainable and prosperous future.
