₦airaland Forum

Peter Obi's opinion on the outcome of the recent CBN MPC meeting outcome....

https://www.linkedin.com/feed/hashtag/?keywords=peterobi


Let me confess that the label of being a vintage Onitsha-based trader does not in any way confer on me the status of an economic expert. With my vast trading knowledge and my involvement in the real sector, 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.

I must caution that what the Nigerian economy needs now is hard headed practical originality and results. Tinkering with classical economic theories can only deepen our crisis.

#PeterObi 🇳🇬

Op there'll be unprecedented wailing from Apc street thugs becos of this thread

They're coming to wail away their souls😂😭

Cindypresh:
Op there'll be unprecedented wailing from Apc street thugs becos of this thread

They're coming to wail away their souls😂😭

oh! U again,I can see why now

Sccarrr:
oh! U again,I can see why now

Have you been stalking me? You don't have a job?

Cindypresh:
Have you been stalking me? You don't have a job?

lol

No time to read any long rubbish from OBI. Next news please

Omo

yarimo:
No time to read any long rubbish from OBI. Next news please

E pain you well well

Just to add to your pain, just a few days ago, the clueless Tinubu and the Finance minister and the dopy CBN governor were chasing Hausa BDC operators all over the country. Immediately Obi shared an opinion, the certificate forger and his fellow incompetents switched policies to match Obi's. Please watch the link below. OBI IS THEIR FATHER


https://www.youtube.com/watch?v=Mzjp4vA2tYE&t=536s&pp=ygUMYWlzaGEgeWVzdWZ1

Keep telling Tinubu's Lagos boys running Nigeria's economy down in the name of governance, whose only bragging right in economics and governance is revenue generation through increased taxation and levies on already impoverished Nigerians. Is that not how they always increase Lagos IGR that they love to brag about; taxing Lagosians and their businesses more and more?



Nigerians must get sense by force