₦airaland Forum

…Says Fiscal Policies Fuelling Economic Crisis

The National Democratic Congress presidential candidate for the 2027 election, Mr Peter Obi, has commended the Central Bank of Nigeria (CBN) for what he described as its sound monetary management under Governor Olayemi Cardoso.

However, he blamed weak fiscal policies, excessive government spending and corruption for Nigeria’s lingering economic challenges.

The Central Bank of Nigeria (CBN) is responsible for the monetary side of the economy, using tools such as interest rate adjustments, foreign exchange market reforms, liquidity management and external reserves management to promote price and financial stability.

In contrast, the Federal Ministry of Finance oversees the fiscal side of the economy through taxation, government budgeting and public expenditure and borrowing, among others aimed at driving economic growth and development.

Obi said although the CBN has taken commendable steps to stabilise the economy through monetary reforms, the gains from those efforts have been largely undermined by what he termed a “reckless fiscal side” of government.

Speaking during an interview with media personality Rufai Oseni monitored by THE WHISTLER, Obi argued that monetary policy alone cannot deliver sustainable economic recovery without corresponding fiscal discipline, prudent public spending and investments that boost productivity.

According to him, the country’s economic managers must ensure that monetary and fiscal authorities work in harmony if reforms are to translate into lower inflation, stronger growth and improved living standards.

“Today we have a monetary side. What the CBN and the government are doing on the monetary side is being fairly well run, but unfortunately you have a reckless fiscal side, so you cannot have that combination. It’s a simple thing,” Obi said.

The former Anambra State governor noted that while debates often focus on the CBN’s monetary decisions, the country’s fiscal management remains the biggest obstacle to achieving economic stability.

“The fiscal side has always been the problem of Nigeria,” he said.


Obi stressed that Nigeria’s high cost of governance, wasteful spending and corruption continue to dilute the impact of reforms being implemented by the monetary authorities.

“The reckless fiscal side is evident in waste. The cost of governance is unacceptable, and corruption. If you deal with this, then you could be able to see the savings from subsidy removal and whatever decisions you are taking applied to critical areas of development,” he added.

His remarks amount to one of the clearest acknowledgements by a leading opposition figure that the CBN’s monetary reforms under Cardoso are moving in the right direction, even as broader economic outcomes remain constrained by fiscal shortcomings.

Since assuming office in September 2023, Cardoso has introduced a series of reforms aimed at restoring confidence in Nigeria’s financial system.Nigeria Business News

These include tightening monetary policy to tackle inflation, reforming the foreign exchange market, clearing foreign exchange obligations, strengthening transparency in FX transactions and improving investor confidence.

The apex bank has also intensified banking sector recapitalisation, expanded digital payment infrastructure and pursued policies designed to restore macroeconomic stability after years of distortions in the foreign exchange market.


Although these reforms have attracted praise from multilateral institutions and investors, analysts have repeatedly argued that monetary policy alone cannot resolve structural challenges such as weak infrastructure, insecurity, poor productivity and fiscal imbalances.

Obi echoed that position during the interview.


Responding to suggestions that rising public debt was largely driven by exchange rate adjustments following the naira’s devaluation, he dismissed attempts to attribute Nigeria’s fiscal pressures solely to currency movements.Nigeria Business News

“Don’t go there. All these things are because of stealing. Simultaneously, when you are removing subsidy, you are supposed to tackle government waste and corruption head-on,” he said.

According to him, reforms such as fuel subsidy removal and exchange rate liberalisation should have been accompanied by aggressive efforts to reduce the cost of governance and eliminate leakages in public finance.

He argued that without fiscal discipline, the benefits expected from difficult economic reforms would continue to bypass ordinary Nigerians.

Obi also questioned why improved government revenue has not translated into better welfare outcomes for citizens.

“They are celebrating that they have increased revenue from about N16tn to over N30tn. Where is this increase? Where is it impacting? Within the same period, poverty has increased. The more they increase revenue, the more they throw people into poverty. So there is something wrong.”

He maintained that increasing tax collections without expanding productive economic activities would only place greater pressure on struggling households and businesses.

“You’re taxing poverty. You’re taxing production. For you to increase your tax revenue, you must increase production.”

Obi said Nigeria must prioritise investments that stimulate economic output, create jobs and improve competitiveness.Nigeria Business News

“How are you going to increase that production? By investing in power. We just talked about power. We just talked about education so we have skilled people because people are building factories and hiring workers. We also need investment in healthcare. Productivity is what drives economic growth.”

The former governor reiterated that he supports key structural reforms, including fuel subsidy removal and exchange rate reforms, but insisted they should be implemented gradually and within a comprehensive economic strategy.

“I said I would do it (subsidy removal). Not that I agree with him (President Bola Tinubu). I was saying I would do it, but I would have done it differently. You must do things in an organised manner.”

He added that reducing corruption and cutting waste should form the foundation of any reform agenda.

“What you bring into the system will simply be wasted if you don’t first deal with corruption and the high cost of governance.”

Economic experts have consistently argued that monetary and fiscal policies must complement each other to achieve macroeconomic stability.

While the CBN focuses on inflation control, exchange rate stability and financial sector resilience, fiscal authorities are expected to drive growth through efficient public spending, infrastructure development and policies that encourage investment.

Obi’s comments reinforce that position by acknowledging the progress made by the Cardoso-led CBN while urging policymakers to match monetary reforms with stronger fiscal discipline and governance reforms.

He concluded that only a coordinated approach such as combining credible monetary management with responsible fiscal policies, investments in productive sectors and a determined fight against corruption would deliver meaningful improvements in the lives of Nigerians and place the economy on a sustainable path to growth.


https://thewhistler.ng/obi-commends-cardoso-led-cbn-monetary-policy-reforms/

He's not wrong though, just that he wouldn't have done any better

One thing about leaders like Peter Obi, OBJ and co is, they recognize competence and use these people.

They don’t hire people who they’ll be telling what to do, and get sycophancy in response, like the crop of leaders Nigeria has had since 2015

The naira has been relatively stable, agreed.

But that stability can be likened to being stable in death.

Meanwhile, the Tinubu administration has been looting the treasury, creating questionable and fake agencies, and inserting them into the national budget to facilitate further looting.

givedemwotowoto:
One thing about leaders like Peter Obi, OBJ and co is, they recognize competence and use these people.

They don’t hire people whom they’ll be telling what to do, and get sycophancy in response, like the crop of leaders Nigeria has had since 2015

Please can you tell us which competent hand Peter Obi ever recognised and used.

If there is any Nigerian with bad leadership skill, it’s Peter Obi. Where are all the commissioners and LG caretakers he had and chairmen he appointed just a year before leaving as Governor? How many of them are still with him and campaigning for him?

He was just commending just to fool his Obidients to look like he is smart in finance

hallelujah 🙌 👏 🙏 let somebody shout HALLELUJAH

Is there nothing new in this guy's brain? He keeps saying the same thing and expecting a different result.

I read a post on this forum few days ago where the OP suggested that people close to obi should talk to him to refine and reduce his message. It seems the advice is already working.
👇
https://www.nairaland.com/8706414/somebody-please-talk-peter-obi

Ofunaofu:
The naira has been relatively stable, agreed.

But that stability can be likened to being stable in death.

Meanwhile, the Tinubu administration has been looting the treasury, creating questionable and fake agencies, and inserting them into the national budget to facilitate further looting.

Be happy for once. Agreed that things are picking up well in Nigeria now.PBAT is working. Even OBI agreed

The reckless fiscal side is evident in waste

Nothing concerns Aso Villa Bandit with fiscal side .

Bobloco:

…Says Fiscal Policies Fuelling Economic Crisis

The National Democratic Congress presidential candidate for the 2027 election, Mr Peter Obi, has commended the Central Bank of Nigeria (CBN) for what he described as its sound monetary management under Governor Olayemi Cardoso.

However, he blamed weak fiscal policies, excessive government spending and corruption for Nigeria’s lingering economic challenges.

The Central Bank of Nigeria (CBN) is responsible for the monetary side of the economy, using tools such as interest rate adjustments, foreign exchange market reforms, liquidity management and external reserves management to promote price and financial stability.

In contrast, the Federal Ministry of Finance oversees the fiscal side of the economy through taxation, government budgeting and public expenditure and borrowing, among others aimed at driving economic growth and development.

Obi said although the CBN has taken commendable steps to stabilise the economy through monetary reforms, the gains from those efforts have been largely undermined by what he termed a “reckless fiscal side” of government.

Speaking during an interview with media personality Rufai Oseni monitored by THE WHISTLER, Obi argued that monetary policy alone cannot deliver sustainable economic recovery without corresponding fiscal discipline, prudent public spending and investments that boost productivity.

According to him, the country’s economic managers must ensure that monetary and fiscal authorities work in harmony if reforms are to translate into lower inflation, stronger growth and improved living standards.

“Today we have a monetary side. What the CBN and the government are doing on the monetary side is being fairly well run, but unfortunately you have a reckless fiscal side, so you cannot have that combination. It’s a simple thing,” Obi said.

The former Anambra State governor noted that while debates often focus on the CBN’s monetary decisions, the country’s fiscal management remains the biggest obstacle to achieving economic stability.

“The fiscal side has always been the problem of Nigeria,” he said.


Obi stressed that Nigeria’s high cost of governance, wasteful spending and corruption continue to dilute the impact of reforms being implemented by the monetary authorities.

“The reckless fiscal side is evident in waste. The cost of governance is unacceptable, and corruption. If you deal with this, then you could be able to see the savings from subsidy removal and whatever decisions you are taking applied to critical areas of development,” he added.

His remarks amount to one of the clearest acknowledgements by a leading opposition figure that the CBN’s monetary reforms under Cardoso are moving in the right direction, even as broader economic outcomes remain constrained by fiscal shortcomings.

Since assuming office in September 2023, Cardoso has introduced a series of reforms aimed at restoring confidence in Nigeria’s financial system.Nigeria Business News

These include tightening monetary policy to tackle inflation, reforming the foreign exchange market, clearing foreign exchange obligations, strengthening transparency in FX transactions and improving investor confidence.

The apex bank has also intensified banking sector recapitalisation, expanded digital payment infrastructure and pursued policies designed to restore macroeconomic stability after years of distortions in the foreign exchange market.


Although these reforms have attracted praise from multilateral institutions and investors, analysts have repeatedly argued that monetary policy alone cannot resolve structural challenges such as weak infrastructure, insecurity, poor productivity and fiscal imbalances.

Obi echoed that position during the interview.


Responding to suggestions that rising public debt was largely driven by exchange rate adjustments following the naira’s devaluation, he dismissed attempts to attribute Nigeria’s fiscal pressures solely to currency movements.Nigeria Business News

“Don’t go there. All these things are because of stealing. Simultaneously, when you are removing subsidy, you are supposed to tackle government waste and corruption head-on,” he said.

According to him, reforms such as fuel subsidy removal and exchange rate liberalisation should have been accompanied by aggressive efforts to reduce the cost of governance and eliminate leakages in public finance.

He argued that without fiscal discipline, the benefits expected from difficult economic reforms would continue to bypass ordinary Nigerians.

Obi also questioned why improved government revenue has not translated into better welfare outcomes for citizens.

“They are celebrating that they have increased revenue from about N16tn to over N30tn. Where is this increase? Where is it impacting? Within the same period, poverty has increased. The more they increase revenue, the more they throw people into poverty. So there is something wrong.”

He maintained that increasing tax collections without expanding productive economic activities would only place greater pressure on struggling households and businesses.

“You’re taxing poverty. You’re taxing production. For you to increase your tax revenue, you must increase production.”

Obi said Nigeria must prioritise investments that stimulate economic output, create jobs and improve competitiveness.Nigeria Business News

“How are you going to increase that production? By investing in power. We just talked about power. We just talked about education so we have skilled people because people are building factories and hiring workers. We also need investment in healthcare. Productivity is what drives economic growth.”

The former governor reiterated that he supports key structural reforms, including fuel subsidy removal and exchange rate reforms, but insisted they should be implemented gradually and within a comprehensive economic strategy.

“I said I would do it (subsidy removal). Not that I agree with him (President Bola Tinubu). I was saying I would do it, but I would have done it differently. You must do things in an organised manner.”

He added that reducing corruption and cutting waste should form the foundation of any reform agenda.

“What you bring into the system will simply be wasted if you don’t first deal with corruption and the high cost of governance.”

Economic experts have consistently argued that monetary and fiscal policies must complement each other to achieve macroeconomic stability.

While the CBN focuses on inflation control, exchange rate stability and financial sector resilience, fiscal authorities are expected to drive growth through efficient public spending, infrastructure development and policies that encourage investment.

Obi’s comments reinforce that position by acknowledging the progress made by the Cardoso-led CBN while urging policymakers to match monetary reforms with stronger fiscal discipline and governance reforms.

He concluded that only a coordinated approach such as combining credible monetary management with responsible fiscal policies, investments in productive sectors and a determined fight against corruption would deliver meaningful improvements in the lives of Nigerians and place the economy on a sustainable path to growth.


https://thewhistler.ng/obi-commends-cardoso-led-cbn-monetary-policy-reforms/

Smh.

He thinks fiscal and monetary are seperated in the executive.
Monetary and fiscal are taking instructions from same President.

Ode man.

Nobody cares about your commendations.

What does obi China know about monetary policy

Someone that doesn't know what green energy means is putting mouth in complex monitary policies.

No doubt Cardoso is doing a good job

But Tinubu has failed in all facets of governance..

Imagine increasing waec fee to generate money to buy SUVs for politicians

Does Obi understand what monetary policy means because he didn’t understand what green energy meant the last time he was asked. He should stop commenting on things he knows nothing about

echoxyz:
Ode man.

Nobody cares about your commendations.

Tinubu the best have told you not to vote him already

givedemwotowoto:
One thing about leaders like Peter Obi, OBJ and co is, they recognize competence and use these people.

They don’t hire people whom they’ll be telling what to do, and get sycophancy in response, like the crop of leaders Nigeria has had since 2015

How?

Give me a typical example of when obi china has exhibited this trait you are attributing to him.

.


Maziobinaokija, dem dey drag your kinsmen,papa OSELOKA

yarimo:
He was just commending just to fool his Obidients to look like he is smart in finance

Naira finding it's own footing and keeps growing at its own pace is what you likened to been stable in death? Are you serious right now? SMH

Ofunaofu:
The naira has been relatively stable, agreed.

But that stability can be likened to being stable in death.

Meanwhile, the Tinubu administration has been looting the treasury, creating questionable and fake agencies, and inserting them into the national budget to facilitate further looting.

I respect Obi for this acknowledged position.

Mr. Oluyemi Cardoso & Jumoke Oduwole are the only genuine Public officers who are effective with the love of country at heart.

The Bloomberg Matching index dashboard acquired by the CBN to bring the FX position of the entire country on a screen (both Bid rates and Offer rates) automatically removes arbitrage and brings forth the real value of the currency.

Mr Obi is in a state of commendation recently.

givedemwotowoto:
One thing about leaders like Peter Obi, OBJ and co is, they recognize competence and use these people.

Competent people like Aisha Yesufu, Randy Peters, Mama, Isaac Fayose, right? These are the competent people Pitobi now works with

Thank God he is not talking about China went back to China or Bangladesh in analyzing Nigeria’s economy..😂😂😂😂😂

yarimo:
He was just commending just to fool his Obidients to look like he is smart in finance

At your age he was in board of different banks and ngx.
Tell us one thing you have ever achieved in life the your family remembers
What a shame

Ofunaofu:
The naira has been relatively stable, agreed.

But that stability can be likened to being stable in death.

Meanwhile, the Tinubu administration has been looting the treasury, creating questionable and fake agencies, and inserting them into the national budget to facilitate further looting.

lol
What do you know about Economy than buying rice at one thousand naira per bag?

This is what we call a trailblazer leader dishing out constructive criticism when it is necessary and applauding the government when it calls for. This is the kind of politics that drives towards the people not bitter ones that centers on Ad hominem and Red herring. Saying the truth doesn't mean you can't differ it only means you are mature in your style of politics.

Can Obi ever see anything good in Nigeria. Mr Agbotikuyo

Obi will soon join Tinubu’s campaign team

yarimo:
He was just commending just to fool his Obidients to look like he is smart in finance

But he is, to have held the position of the chairman of fidelity bank is not a small fit, you must be smart in finance

Obi doesn't play bitter dirty politics he is the most refined and the most civilised politician we currently have in nigeria right now he criticise constructively and commend when necessary something that's alien to tinibu and his supporters.