Governor Godwin Obaseki of Edo State has criticized the Central Bank of Nigeria’s decision to raise the Monetary Policy Rate (MPR) by 22.75 percent, arguing that it is not the solution to the current economic challenges in the country.
During his speech as a guest speaker at the Annual Dinner of the Edo Zone Bankers Committee in Benin City, Obaseki emphasized the importance of boosting local production to meet the demand for goods and services rather than relying on monetary policy adjustments alone.
Obaseki stated, “Fundamentally and fiscally, increasing the MPR is not going to lead to growth in our economy. We must focus on increasing production and reducing our dependence on imports.”
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He stressed the need for fiscal and monetary policies to work hand in hand, highlighting the importance of addressing fiscal issues to overcome economic challenges effectively.
Last week, the Central Bank of Nigeria’s Monetary Policy Committee announced the increase of the benchmark interest rate by 400 basis points to 22.75 percent.
This decision was aimed at addressing the country’s high inflation rate, which currently stands at 29.90 percent.
Obaseki urged against panicking over foreign exchange challenges and emphasized the priority of creating job opportunities for young people to stimulate economic growth and generate more foreign exchange revenue domestically.
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