Rédaction Africa Links 24 with Osaretin Osadebamwen
Published on 2024-02-29 11:51:08
The Labour Party’s presidential candidate for the 2023 general election, Mr. Peter Gregory Obi, raised concerns about the recent decisions made by the Central Bank of Nigeria regarding the Monetary Policy Rate (MPR) and Cash Reserve Ratio (CRR). In a statement shared on his social media handle, Obi emphasized that his insights were drawn from his experience in the real sector rather than just his background as a trader in Onitsha.
Expressing his reservations about the increase in MPR to 22.5% and CRR to 45%, Obi highlighted the potential negative impact on the country’s economy. He argued that tightening liquidity in the financial system could lead to job losses in sectors reliant on bank loans and credit facilities. Furthermore, he pointed out that a significant portion of the money in circulation was outside the banking system, rendering the new measures less effective in managing the money supply.
Obi warned that the hike in interest rates resulting from the new policies would make it challenging for sectors like manufacturing and small businesses to repay loans, potentially leading to increased bad debts and worsening economic conditions. He suggested that addressing insecurity was crucial in alleviating the economic challenges facing Nigeria, as it would boost food and crude oil production, leading to lower prices and increased productivity.
The presidential candidate stressed the need for practical innovations in the Nigerian economy rather than relying solely on traditional economic theories. He emphasized the importance of generating tangible results to address the current crisis effectively. Obi called for a strategic approach that prioritizes improving productivity and restoring confidence in foreign investments to stimulate economic growth.
In conclusion, Obi reiterated the significance of tackling insecurity as a means to enhance economic stability and urged the government to focus on practical solutions to drive sustainable development. He cautioned against simply adhering to established economic theories and encouraged a more hands-on approach to resolving the nation’s economic challenges.
Read the original article on Nigerian Tribune
