On Monday, Governor Godwin Obaseki of Edo State said that the new monetary policy of the Central Bank of Nigeria (CBN) cannot help grow the nation’s economy, News About Nigeria reports.
Obaseki said this in response to the move by the CBN governor, Olayemi Cardoso, to increase the monetary policy rate from 18.75 percent to 22.75 percent.
Cardoso explained that the adjustment in the MPR would help in addressing the country’s inflation rate.
However, in response to the increase, the Edo state governor contended that the decision was not the answer to the ongoing economic challenges in the country.
Obaseki, who said this in a video shared on his official Twitter account on Monday, noted that one way to solve the economic challenges bedevilling the nation is to focus on production as a nation.
He tweeted, “I understand that the monetary rational for increasing MPR but fundamentally and fiscally, it is not going to lead to growth in our economy. We must focus on the fundamentals which is increasing production, making sure our citizens produce the goods and services we consume and depend less on import.
“Our economic policy and monetary policy cannot be determined by exchange rate alone. So, this whole issue of increasing the cash reserves in a bid to tighten liquidity is going to be detrimental to our economy. I understand the challenge the monetary authorities face but unfortunately you cannot plan with one hand.”
He further noted that Nigerians should quit panicking because of the current consistent increase in foreign exchange and instead focus on how they can develop the nation through production.
