Edo State Governor, Godwin Obaseki, has voiced his disagreement with the Central Bank of Nigeria’s decision to raise the Monetary Policy Rate (MPR) by 22.75 percent.
Speaking at the Annual Dinner of the Edo Zone Bankers Committee in Benin City, Governor Obaseki argued that the move is not a solution to the prevailing economic challenges in the country.
Governor Obaseki emphasised the importance of enhancing local production to meet domestic demand for goods and services. He stressed that focusing on increasing production and reducing dependency on imports is crucial for economic growth.
Expressing his concerns, Governor Obaseki stated, “Our economic policy and monetary policy cannot be determined by the exchange rate alone.” He cautioned against overreliance on tightening liquidity measures, highlighting the need for fiscal policies to complement monetary strategies for sustainable economic development.
The Central Bank of Nigeria’s Monetary Policy Committee recently raised the benchmark interest rate by 400 basis points to 22.75 percent, along with adjustments in other monetary parameters. CBN Governor Olayemi Cardoso cited addressing the country’s high inflation rate as the rationale behind the decision.
Governor Obaseki urged against panicking over foreign exchange challenges, advocating instead for a focus on job creation and economic growth initiatives to mitigate the impact of foreign exchange constraints.
