Peter Obi emphasized that despite being recognized as a seasoned trader from Onitsha, he humbly acknowledges that this label doesn't automatically qualify him as an economic expert. However, drawing from his extensive experience in trading and involvement in the real sector, he strongly opposes the recent decisions made by the Monetary Policy Committee.
Increasing the Monetary Policy Rate (MPR) to 22.5% and the Cash Reserve Ratio (CRR) to 45% will, in his view, exacerbate the economic challenges faced by many Nigerian households. He predicts a rise in job losses, particularly in manufacturing and other sectors reliant on bank financing.
Tightening liquidity, he argues, does not address the root causes of inflation, notably the lack of productivity, particularly in food production.
Additionally, he highlights that a significant portion of the money supply is outside the banking system, rendering these measures ineffective in managing overall liquidity. Instead, he advocates for addressing insecurity as a fundamental solution to boosting production, reducing inflation, and attracting foreign investments.
He cautions against blindly adhering to conventional economic theories, emphasizing the need for practical strategies tailored to Nigeria's unique challenges to yield tangible results.
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