Can we digest the content of Obi's criticism and submissions and leave his political differences? Nigeria needs all working suggestions.

The criticism provided by Peter Obi raises valid concerns about the potential negative impacts of the government's decision to increase interest rates in Nigeria. While the points made by Peter Obi about the possible consequences of job losses, credit availability for the real sector, and the overall economy are worth considering, there are a few aspects that can be further explored or countered:

1. **Transmission Mechanism of Monetary Policy**:
- Peter Obi focuses on the potential negative impacts of tightening monetary policy on the real sector. However, it's essential to acknowledge that the Central Bank of Nigeria (CBN) adjusts interest rates to control inflation, stabilize the currency, and foster economic growth. By raising interest rates, the CBN aims to reduce inflationary pressures and maintain price stability. While higher rates may make borrowing more expensive, they can also help in curbing inflation and attracting foreign investments, which are crucial for long-term economic stability.

2. **Inflation Control and Economic Stability**:
- Inflation in Nigeria has been a persistent challenge, and by increasing interest rates, the CBN is signalling its commitment to tackling this issue. High inflation erodes purchasing power, distorts resource allocation, and reduces economic efficiency. By implementing appropriate monetary policy measures, the CBN aims to create a stable economic environment conducive to sustainable growth.

3. **Addressing Root Causes of Inflation**:
- While Peter Obi points out that addressing insecurity and boosting production is vital for reducing inflation and enhancing economic growth, it's crucial to recognize that multiple factors contribute to inflation. Insecurity is undoubtedly a significant concern, but monetary policy, including interest rate adjustments, is a tool that can complement broader efforts to address structural issues in the economy.

4. **Balancing Short-Term Pain with Long-Term Gain**:
- While a hike in interest rates may have short-term adverse effects on businesses and borrowers, it is essential to consider the long-term benefits of price stability and sustainable economic growth. A well-implemented monetary policy can help create an environment that fosters investment, enhances productivity, and attracts both domestic and foreign capital.

In conclusion, while the critique by Peter Obi raises valid concerns about the potential impacts of the interest rate hike by CBN, it is crucial to view monetary policy decisions within the broader context of economic stability and long-term growth. Instead of dismissing traditional economic theories outright, a nuanced approach that considers both short-term challenges and long-term benefits can lead to more effective policy recommendations and outcomes.

- Submission by Madam Excellency

Nlfpmod
Mynd44

Can we have divergent opinions on this subject even from professional and layman's points of view?

Be there Looking for where Obi is right and wrong while Tinubu and his son's travel to Qatar on tax payers money.

Your POV might give an additional fair look to the whole situation at hand --- but I still think Obi the boy is right about his analysis of the whole situation -- Just relying on old economic ideas might not be the best way to deal with Nigeria's tough economic issues right now. All I want is for Nigeria to move forward.

Bro, Peter Obi is not wrong ...

CBN has been secretly and illegally printing money for FG in the last couple of months. That is where the too much Naira notes in circulation is from.

It's wicked for CBN to purnish innocent business operators for its own misconduct.
.

LadyExcellency:
Can we digest the content of Obi's criticism and submissions and leave his political differences? Nigeria needs all working suggestions.

The criticism provided by Peter Obi raises valid concerns about the potential negative impacts of the government's decision to increase interest rates in Nigeria. While the points made by Peter Obi about the possible consequences of job losses, credit availability for the real sector, and the overall economy are worth considering, there are a few aspects that can be further explored or countered:

1. **Transmission Mechanism of Monetary Policy**:
- Peter Obi focuses on the potential negative impacts of tightening monetary policy on the real sector. However, it's essential to acknowledge that the Central Bank of Nigeria (CBN) adjusts interest rates to control inflation, stabilize the currency, and foster economic growth. By raising interest rates, the CBN aims to reduce inflationary pressures and maintain price stability. While higher rates may make borrowing more expensive, they can also help in curbing inflation and attracting foreign investments, which are crucial for long-term economic stability.

2. **Inflation Control and Economic Stability**:
- Inflation in Nigeria has been a persistent challenge, and by increasing interest rates, the CBN is signalling its commitment to tackling this issue. High inflation erodes purchasing power, distorts resource allocation, and reduces economic efficiency. By implementing appropriate monetary policy measures, the CBN aims to create a stable economic environment conducive to sustainable growth.

3. **Addressing Root Causes of Inflation**:
- While Peter Obi points out that addressing insecurity and boosting production is vital for reducing inflation and enhancing economic growth, it's crucial to recognize that multiple factors contribute to inflation. Insecurity is undoubtedly a significant concern, but monetary policy, including interest rate adjustments, is a tool that can complement broader efforts to address structural issues in the economy.

4. **Balancing Short-Term Pain with Long-Term Gain**:
- While a hike in interest rates may have short-term adverse effects on businesses and borrowers, it is essential to consider the long-term benefits of price stability and sustainable economic growth. A well-implemented monetary policy can help create an environment that fosters investment, enhances productivity, and attracts both domestic and foreign capital.

In conclusion, while the critique by Peter Obi raises valid concerns about the potential impacts of the interest rate hike by CBN, it is crucial to view monetary policy decisions within the broader context of economic stability and long-term growth. Instead of dismissing traditional economic theories outright, a nuanced approach that considers both short-term challenges and long-term benefits can lead to more effective policy recommendations and outcomes.

- Submission by Madam Excellency

All what you wrote is only possible if the CBN has influence on a substantial amount of the money in circulation

Like Peter Obi pointed out only 12% of the money in circulation pass through banks 88% is on the informal sector

What ever you do on that's 12% has little or no impact on the general money in circulation

Ogiame:
Be there Looking for where Obi is right and wrong while Tinubu and his son travel to Qatar on taxpayers' money.

Read my submission again. It has nothing to do with the President, APC or any party. CBN is an independent agency of government responsible for monetary policies and we including you, Peter Obi and all Nigerians are at liberty to dissert the policy as people in the academic and the field and make submissions.

Your views while valid only further explained the plausibility of the CBN's policy while not addressing the key point raised by PO.

Why not tackle the cause instead of the effect? WHy not tackle insecurity and corruption? This is the eternal ask that seems to be unanswered

Peter Obi is right.

Increasing interest rate to fight inflation is useless if more than 80% of your money supply is outside the banking system.

It's common sense.

You don't need to be an Economist to know this. What the CBN is doing will only hurt investment and productivity.

mrvitalis:

All that you wrote is only possible if the CBN influences a substantial amount of the money in circulation

As Peter Obi pointed out only 12% of the money in circulation passes through banks 88% is in the informal sector

Whatever you do on that 12% has little or no impact on the general money in circulation

All these loan apps in Nigeria that are giving out loans indiscriminately, do they give you cash? Easy borrowing from all channels contributes to high inflation.

LadyExcellency:


Read my submission again. It has nothing to do with the President, APC or any party. CBN is an independent agency of government responsible for monetary policies and we including you, Peter Obi and all Nigerians are at liberty to dissert the policy as people in the academic and the field and make submissions.

You don't get it do you? Who controls the CBN?


Do you think your submissions or that of Peter Obi matters to this current administration? We are only going to be filling waters of ideas into the APC basket.

OfficialAPCNig:
Peter Obi is right.

Increasing interest rates to fight inflation is useless if more than 80% of your money supply is outside the banking system.

It's common sense.

You don't need to be an Economist to know this. What the CBN is doing will only hurt investment and productivity.

I pointed out where he is right and elaborated on where I see his submission as not broad enough.

As I said before. Nigeria is running a 60 to 75% cashless economy notwithstanding the money in circulation controlled by the banks and individuals. Almost 75% of the heavy transactions pass through the banking system and as such CBN still has oversight over money flow.

It is textbook economics that will put Nigeria in trouble.

What exactly is the problem? Inflation.

There are many types of inflation. Which type of inflation is Nigeria facing? Cost push inflation.
The removal of fuel subsidy and floating of naira have increased the cost of production which is causing the current inflation.

Can anyone tell me how increase in interest rate will reduce the price of petrol and diesel?

Money in circulation has nothing to do with the inflation we are facing.

I want to see the suggestions of those lecturers that are always supporting opposite
Example Dr. Okweshine

jmoore:
It is textbook economics that will put Nigeria in trouble.

What exactly is the problem? Inflation.

There are many types of inflation. Which type of inflation is Nigeria facing? Cost push inflation.
The removal of fuel subsidy and floating of naira have increased the cost of production which is causing the current inflation.

Can anyone tell me how increase in interest rate will reduce the price of petrol and diesel?

Money in circulation has nothing to do with the inflation we are facing.

Pls help tell LadyExcellency o...
The current high inflation is majorly caused by fx rate as we import a lot.. local food inflation is caused by reduced supply and high diesel cost... The inflation currently is not in anyway caused by excess money supply... So.why raise interest rates so high as to kill manufacturing & d rest of d real sector?
What sort of militant economics is that ?

Peter obi is always right to them and alll other people are wrong.





MAD PEOPLE

This didn't start untill they desperately need a Christian IPOB president!

Paid mercenary from them that destroyed this nation.

victorclean:
Paid mercenary from them that destroyed this nation.

The fossil of a president that have been raping this nation since 2015 has been as confused as a dullard he is since he snatched power....

victorclean:
Paid mercenary from them that destroyed this nation.

LadyExcellency, your people don dey attack u now o
Dem think say u be mercenary...I'm glad u know what it feels like, trying to give a balance view yet being at the receiving end