The Edo state Governor, Godwin Obaseki has knocked the Central Bank of Nigeria for raising the Monetary Policy Rate by 22.75 per cent amidst the economic hardship in the country.
Obaseki noted that the Apex bank’s decision will further worsen the country’s ongoing economic challenges.
He added that the rationale behind the increasing monetary policy rate was wrong as Africa’s largest economy does not need exchange rates to survive.
Obaseki made this known, during an event organised by the Edo Zone of Bankers’ Committee in Benin City over the weekend.
He said: “I understand that the monetary rational for increasing MPR but fundamentally and fiscally, it is not going to lead to growth in our economy.
“We must focus on the fundamentals which is increasing production, making sure our citizens produce the goods and services we consume and depend less on import.
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“Our economic policy and monetary policy cannot be determined by exchange rate alone. So, this whole issue of increasing the cash reserves in a bid to tighten liquidity is going to be detrimental to our economy. I understand the challenge the monetary authorities face but unfortunately you cannot plan with one hand.
“The economy is about the fiscal and monetary policies, both must work hand in hand and when they don’t, as they don’t in Nigeria, we will have crises. So, we should focus on fiscal issues so that we can grow our economy out of the challenges we have.”
