Edo State Governor, Godwin Obaseki, has expressed skepticism regarding the effectiveness of the current policies implemented by the Central Bank of Nigeria (CBN) in fostering the necessary economic growth for the country.

Governor Obaseki highlighted his concerns, stating that the elevated interest rates introduced by the apex bank would consistently impede Nigeria’s economic expansion, particularly hindering small business owners’ access to loans.

In a viral video recorded during an event organized by the Edo Zone of Bankers’ Committee in Benin City, Governor Obaseki emphasized, “Policies recently rolled out by the central bank, unfortunately, will not bolster the growth of our economy.”

He criticized the focus on increasing the monetary policy rate, asserting that Africa’s largest economy does not solely rely on exchange rates for survival.

Obaseki urged for the development of indigenous policies by the federal government and CBN leadership to foster job opportunities for youths and enhance productivity in the country.

He emphasized the need to concentrate on fundamental aspects such as increasing production and reducing dependence on imports, rather than solely fixating on exchange rates.

Governor Obaseki stressed the importance of synergy between fiscal and monetary policies, emphasizing that both must work in tandem to avert potential crises in Nigeria’s economy.

He advocated for a shift in focus towards addressing fiscal issues to steer the economy out of its challenges, suggesting that job creation for young people should be prioritized over concerns about foreign exchange.

He said, “I understand the monetary rationale for increasing MPR fundamentally and fiscally, it is not going to lead to growth in our economy. We must focus on the fundamentals which are increasing production, making sure our citizens produce goods and services we consume, and depend less on imports.

“Our economic policy and monetary policy cannot be determined by exchange rate alone, so the issue of increasing cash reserves in the bid to tighten the liquidity is going to be detrimental to our economy.

“I understand the challenge the monetary authorities face, but unfortunately, you cannot clap with one hand. The economy is about fiscal and monetary policies – both must work hand-in-hand and when they don’t as they don’t in Nigeria, there can be a crisis.

“We should focus on fiscal issues so that we can grow our economy out of the challenges we had. We should not panic too much because of foreign exchange. We must focus on how we can do things within our economy, and how we can grow our economy and earn more foreign exchange if foreign exchange is our problem, but I believe creating jobs for young people should be more of a priority for us as people at this time.”


https://parallelfactsnews.com/cbn-policies-wont-drive-economic-growth/

Just as he warned when Buhari and Emefiele were printing money.

The small scale businesses got me .
With increased interest rates i wonder what the plans of the apc government is if not more inflation and eventual death of businesses.

This is what I call constructive criticism. He spoke like someone who understands the issues and not just playing politics.

He was also one of the first people to warn about the consequences of PMB/ Emefiele just printing money. At that time I thought and believed he was playing politics, but events have proven him right.

Now I am taking him seriously.

Governor Obaseki word suggests that Tinubu government has failed already. We Nigerians good mind has our support for Tinubu because he cannot afford to fail.

9jatriot:
This is what I call constructive criticism. He spoke like someone who understands the issues and not just playing politics.

He was also one of the first people to warn about the consequences of PMB/ Emefiele just printing money. At that time I thought and believed he was playing politics, but events have proven him right.

Now I am taking him seriously.

But Obi said the same thing and you were angry.. why?

First of all the lamba king was playing politics with no constructive criticism.

Secondly, I understand this man has a finance background and he has been right once, also he is speaking from a position of knowledge. If you notice in the report he was offering an alternative idea without unnecessarily trying to play to the gallery like the lamba king likes to do.

Thirdly, Obaseki also said we should try and remove our focus from the exchange rate and rather than put so much resources trying to fight it, we should try to grow local products. Now, this is different from Obi who although keeps shouting consumption to production is always tactfully supporting his fellow importers.

Kingsmeal:


But Obi said the same thing and you were angry.. why?

Gov. Obaseki, with this your knowledge, what have you achieve in Edo state? Kettle calling pot 'black'.

It’s so easy for these politicians to say words while they are not in power, when they get to power, they fail to implement their messianic policies.

So Obaseki was Edo governor for 8 years, what have the state benefited from his economics brain he thought he is parading?

They still won't listen.

The economy is successfully floating into the Atlantic ocean.

9jatriot:
First of all the lamba king was playing politics with no constructive criticism.

Secondly, I understand this man has a finance background and he has been right once, also he is speaking from a position of knowledge. If you notice in the report he was offering an alternative idea without unnecessarily trying to play to the gallery like the lamba king likes to do.

Thirdly, Obaseki also said we should try and remove our focus from the exchange rate and rather than put so much resources trying to fight it, we should try to grow local products. Now, this is different from Obi who although keeps shouting consumption to production is always tactfully supporting his fellow importers.

The issue is that, if the government fail to tackle the way the naira was falling, prices of goods and services will keep on increasing.

The government has to stabilize the naira

9jatriot:
First of all the lamba king was playing politics with no constructive criticism.

Secondly, I understand this man has a finance background and he has been right once, also he is speaking from a position of knowledge. If you notice in the report he was offering an alternative idea without unnecessarily trying to play to the gallery like the lamba king likes to do.

Thirdly, Obaseki also said we should try and remove our focus from the exchange rate and rather than put so much resources trying to fight it, we should try to grow local products. Now, this is different from Obi who although keeps shouting consumption to production is always tactfully supporting his fellow importers.

You're a clown

So growing local products doesn't translate to production?

Omoh. Tinubu don chop una forget change. Kai

I do not have a problem with your submission sir. However, if I understand Obaseki well, he is saying perhaps we are paying too much attention to the exchange rate and taking our focus away from other local productive activities that we can also focus on to galvanize our economy.

That talk about local companies not able to access loans because of higher interest rate does not seem to have much of an impact to me because even before now, only few small scale companies have access to loans, but then he is Obaseki with some level of info I am not privy to.

Paraman:
The issue is that, if the government fail to tackle the way the naira was falling, prices of goods and services will keep on increasing.

The government has to stabilize the naira

Typical obidient, quick to insult.

Anyway, go and read Obi's submission on the subject matter and compare it to this report on Obaseki, if you cannot see the difference then there is nothing I can discuss further with you.

Kingsmeal:


You're a clown

So growing local products doesn't translate to production?

Omoh. Tinubu don chop una forget change. Kai

9jatriot:
Typical obidient, quick to insult.

Anyway, go and read Obi's submission on the subject matter and compare it to this report on Obaseki, if you cannot see the difference then there is nothing I can discuss further with you.

I should go and read what I read with clear mind again.

Did you read it with clear mind ? Let's start from there.

I am of the strong opinion that the recent decision of the Monetary Policy Committee to increase the Monetary Policy Rate, MPR, to 22.5% and the Cash Reserve Ratio, CRR, to 45% will further worsen the economic situation of most Nigerian households as it is bound to
cause more job losses in the productive sector, especially manufacturing and other sectors that rely on bank loans and credit facilities for their funding needs. Tightening liquidity in the financial system does not improve productivity, ie food production, which is the major cause of inflation in Nigeria. Moreover, only about 12% of N3.6 trillion of the total money in circulation is in the banking system which means that 88%, about N3.2 trillion is outside the banking system.

So, this measure would rather be counterproductive as it would not address the intended purpose of managing the money supply. These new measures will worsen the fragile economy as the supply of funds would dry up for the real sector, and the new MPR rate hike will push the interest rate on loans to above 30%, which would be very difficult for the real sector operators especially manufacturers and SMEs to repay; resulting, obviously, in increased bad loans, and worsening the nation's economic situation.

The most critical way to manage our high rate of inflation and decline in production is for the government to address the issue of insecurity in the country, which will allow for increased food, and crude oil production, and an overall increase in production, which will make products, especially food, cheaper. This way we would increase our productivity as well as restore the confidence of FDIs and FPIs to come back to the country.

Peter Obi

Dear Wailer, where's the politics in Obi's submission?

Or has hatred blocked your reasoning?

CBN under APC is a disaster

CBN is clueless.
When inflation is driven by over spending, resulting from cheap and easy credit, then tightening by raising interest rates is the correct approach.
Nigeria's inflation is not that kind. The inflation in Nigeria is not being driven by people spending too much, it's been driven by the fall in the value of the currency, in what is essentially an import dominated economy. Putting up interest rates will not solve that problem at all. The only solution is to curb imports and increase exports. One of the ways to that is to encourage manufacturing and processing, but raising interest rates actually makes it harder for such firms to raise capital. Obaseki is spot on. Sadly he won't be listened to, again and in some months time, the truth of his words will be clear for all to see. Again.

Okay obidient.... I prefer Obaseki's submission.
It is more logical , it does not mean that I totally agree with it but it just makes more sense.

Kingsmeal:


I should go and read what I read with clear mind again.

Did you read it with clear mind ? Let's start from there.



Peter Obi

Dear Wailer, where's the politics in Obi's submission?

Or has hatred blocked your reasoning?

Nigeria has 2 disctinct worlds. Those with plenty cash and are ready to overspend and those scaping for daily bread.
The reason why there is high inflation is because our exchange rate is very high, there are many reasons why that is happening but the worse of them is speculators ready to mop up any dollar. Those speculators are among that class of heavy spenders.

My thinking is that CBN is trying to use higher MPR to increase the interest rate of various CBN investments instruments so that the incentive to invest in CBN instructments will increase, then there will be less naira chasing USD and then the exchange rate may stabilizer and perhaps go down, which will then keep the exchange rate stable or also begin to reduce.

That is what I believe is the idea behind MPR increase. It is a roundabout way of trying to achieve a result.

bjdon:
CBN is clueless.
When inflation is driven by over spending, resulting from cheap and easy credit, then tightening by raising interest rates is the correct approach.
Nigeria's inflation is not that kind. The inflation in Nigeria is not being driven by people spending too much, it's been driven by the fall in the value of the currency, in what is essentially an import dominated economy. Putting up interest rates will not solve that problem at all. The only solution is to curb imports and increase exports. One of the ways to that is to encourage manufacturing and processing, but raising interest rates actually makes it harder for such firms to raise capital. Obaseki is spot on. Sadly he won't be listened to, again and in some months time, the truth of his words will be clear for all to see. Again.

9jatriot:
Okay obidient.... I prefer Obaseki's submission.
It is more logical , it does not mean that I totally agree with it but it just makes more sense.

Wailing Wailer😂😂😂.

Una never see anything. This time around, na una go de play opposition even while leading. This is not Jonathan 😂😂

Wailing wailer na una name, no one can take it from una.
YOu guys changed to obidients recently.

At least you admit say we de lead. That is a good start.

Opposition is not madness, opposition is being sensible and logical like Obaseki has just done and not lamba like una oga.

Kingsmeal:


Wailing Wailer😂😂😂.

Una never see anything. This time around, na una go de play opposition even while leading. This is not Jonathan 😂😂

9jatriot:
Wailing wailer na una name, no one can take it from una.
YOu guys changed to obidients recently.

At least you admit say we de lead. That is a good start.

Opposition is not madness, opposition is been sensible and logical like Obaseki has just done and not lamba like una oga.

You're the mad fellow.

You turned a submission by Obi into politics and when I showed you the said submission, you turned like serpent to say another trash.

Una never see anything. For this administration, una go dey collect am fire for fire..

Read this intelligent and logical submission by Obaseki and compare with your lamba king.

Throwing insults around like all typical obidients will not stop this message from being intelligent and that of your lamba king from being pedestral. This is how people discuss in board meetings and not playing to gallery or playing politics.

Governor Obaseki stressed the importance of synergy between fiscal and monetary policies, emphasizing that both must work in tandem to avert potential crises in Nigeria’s economy.

He advocated for a shift in focus towards addressing fiscal issues to steer the economy out of its challenges, suggesting that job creation for young people should be prioritized over concerns about foreign exchange.

He said, “I understand the monetary rationale for increasing MPR fundamentally and fiscally, it is not going to lead to growth in our economy. We must focus on the fundamentals which are increasing production, making sure our citizens produce goods and services we consume, and depend less on imports.

“Our economic policy and monetary policy cannot be determined by exchange rate alone, so the issue of increasing cash reserves in the bid to tighten the liquidity is going to be detrimental to our economy.

“I understand the challenge the monetary authorities face, but unfortunately, you cannot clap with one hand. The economy is about fiscal and monetary policies – both must work hand-in-hand and when they don’t as they don’t in Nigeria, there can be a crisis

Kingsmeal:


You're the mad fellow.

You turned a submission by Obi into politics and when I showed you the said submission, you turned like serpent to say another trash.

Una never see anything. For this administration, una go dey collect am fire for fire..

9jatriot:
Read this intelligent and logical submission by Obaseki and compare with your lamba king.

Throwing insults around like all typical obidients will not stop this message from being intelligent and that of your lamba king from being pedestral. This is how people discuss in board meetings and not playing to gallery or playing politics.

Wailing Wailer. Ntoor.

You first threw insults by calling Obidients mad fellow, now you're playing victim😂😂.

Wailer cry blood

Can I see where this happened?

I hope that is not what you guys really are, this one you are calling yourself a name you were not called by me.

Kingsmeal:


Wailing Wailer. Ntoor.

You first threw insults by calling Obidients mad fellow, now you're playing victim😂😂.

Wailer cry blood

9jatriot:
Can I see where this happened?

I hope that is not what you guys really are, this one you are calling yourself a name you were not called by me.

A wailing Wailer like you has no right to ask questions.

Go into the room and cry.

This time, make sure blood comes out.

Don't mind those lowlifes.

Kingsmeal:


I should go and read what I read with clear mind again.

Did you read it with clear mind ? Let's start from there.



Peter Obi

Dear Wailer, where's the politics in Obi's submission?

Or has hatred blocked your reasoning?

How then do you control inflation?, and how has Obaseki increased production in his state?, how has he improved the lives of edo people so far?, is there food sufficiency in edo?.

Kingsmeal:

You're a clown
So growing local products doesn't translate to production?
Omoh. Tinubu don chop una forget change. Kai

What local product is Obi growing?, don't tell me beer..

kaludestiny10:
Don't mind those lowlifes.

Imagine the lowlife spinning an excellent submission by Obi into politics.

When I caught him, he moved like a serpent. Omo

In case you missed what an intelligent submission is, even if you do not agree 100%, you can still se the flow. Here is it again sha in case you missed it:

Governor Obaseki stressed the importance of synergy between fiscal and monetary policies, emphasizing that both must work in tandem to avert potential crises in Nigeria’s economy.

He advocated for a shift in focus towards addressing fiscal issues to steer the economy out of its challenges, suggesting that job creation for young people should be prioritized over concerns about foreign exchange.

He said, “I understand the monetary rationale for increasing MPR fundamentally and fiscally, it is not going to lead to growth in our economy. We must focus on the fundamentals which are increasing production, making sure our citizens produce goods and services we consume, and depend less on imports.

“Our economic policy and monetary policy cannot be determined by exchange rate alone, so the issue of increasing cash reserves in the bid to tighten the liquidity is going to be detrimental to our economy.

“I understand the challenge the monetary authorities face, but unfortunately, you cannot clap with one hand. The economy is about fiscal and monetary policies – both must work hand-in-hand and when they don’t as they don’t in Nigeria, there can be a crisis

Kingsmeal:


A wailing Wailer like you has no right to ask questions.

Go into the room and cry.

This time, make sure blood comes out.