Governor Godwin Obaseki of Edo State has rejected the recent economic policies introduced by the Central Bank of Nigeria (CBN). He noted that the policies do not support the economic growth of his state and the country as a whole.
Obaseki emphasized that the increase in interest rates would prevent small business owners from accessing loans to expand their businesses, which would be detrimental to the growth of the country. He made these comments at an event organized by the Edo Zone of Bankers’ Committee in Benin City, the state capital, on Monday.
The governor maintained that Nigeria should not be overly concerned about interest rates, but rather create an enabling environment for people to produce goods and services for consumption while reducing the country’s reliance on imported products.
According to Obaseki, “Policies that have just been rolled out by the central bank, unfortunately, will not support the growth of our economy. Interest rates are already very high, and increasing them will clearly not allow small borrowers or businesses to have access to credit to help them grow. When an economy is in this state, it needs all the push and support it can get.”
Obaseki explained that the motive behind increasing the monetary policy rate (MPR) cannot support economic growth, and that the exchange rate is not a remedy for the nation’s economic challenges. Instead, he advised the government to focus on creating jobs for Nigerian youths to transform the country into a productive economy.
He also emphasized that the country’s economic policy and monetary policy cannot rely solely on the exchange rate, and increasing cash reserves to tighten liquidity will be detrimental to the economy. Obaseki stressed that both fiscal and monetary policies must work hand-in-hand to avoid a crisis.
In conclusion, Obaseki believes that the country should focus on fiscal issues to grow the economy out of its current challenges. He emphasized that creating jobs for young people should be a priority for the country at this time.