Obaseki Faults CBN’s New Monetary Policy, Calls For Boosting Local Production

• Governor Obaseki criticizes CBN’s decision to raise Monetary Policy Rate to 22.75%

• He advocates for boosting local production to meet demand for goods and services

• Obaseki says economic and monetary policies must work together for growth

Eko Hot Blog reports that Governor Obaseki criticizes the CBN’s decision to raise the monetary policy rate to 22.75%.

He believes this move will not spur economic growth in the country.

Obaseki advocates for boosting local production to meet the demand for goods and services.
Increasing domestic production and reducing dependence on imports are his proposed solutions.

He emphasizes the importance of economic and monetary policies working together for growth.
Policies operating in silos will lead to crises, according to the governor.

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During his speech at the Annual Dinner of the Edo Zone Bankers Committee, Obaseki stated his disagreement with CBN’s move.
He expressed his views as a guest speaker at the event held in Benin City, Edo State.

“I understand the monetary rationale for increasing MPR, but fundamentally and fiscally, it is not going to lead to growth in our economy,” Obaseki said.
He questioned the effectiveness of the policy in driving economic growth.

Obaseki stressed the need to “focus on the fundamentals, which is increasing production.”
He advocated for citizens producing goods and services consumed domestically, reducing import dependence.

“Our economic policy and monetary policy cannot be determined by the exchange rate alone,” Obaseki warned.
He criticized the focus on exchange rate as the sole determinant of policies.

Obaseki further stated, “This whole issue of increasing cash reserves to tighten liquidity is going to be detrimental to our economy.”
He expressed concern over the potential negative impact of liquidity tightening measures.

“The economy is about fiscal and monetary policies, both must work hand in hand,” the governor emphasized.
He highlighted the need for synergy between fiscal and monetary policies for economic progress.

Last week, the CBN’s Monetary Policy Committee raised the benchmark interest rate to 22.75%.
This move aimed to address the country’s high inflation rate of 29.90%.

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Obaseki advised against panicking over foreign exchange issues.
Instead, he advocated for growing the domestic economy to earn more foreign exchange.

“Creating jobs for young people should be more of a priority for us as a people at this time,” He concluded.
He underscored the importance of prioritizing job creation for youth.

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