Former Governor of Anambra State, Peter Obi, has taken to his verified Twitter account to voice his concerns over recent monetary policy decisions in Nigeria. In a candid confession, Obi refuted the notion that his background as a seasoned trader in Onitsha automatically qualifies him as an economic expert.
However, drawing from his extensive experience in the trading sector and his involvement in the real economy, Obi expressed strong reservations about the recent actions of the Monetary Policy Committee (MPC).
The MPC’s decision to hike the Monetary Policy Rate (MPR) to 22.5% and the Cash Reserve Ratio (CRR) to 45% has stirred controversy, with Obi warning of dire consequences for Nigerian households. He argued that tightening liquidity in the financial system, as indicated by the increased MPR and CRR, would exacerbate the economic woes faced by many, particularly in terms of job losses.
Obi cautioned that the move is likely to hit the productive sectors hard, especially manufacturing and others reliant on bank loans and credit facilities for funding. He emphasized that such policies do not address the root causes of inflation in Nigeria, notably the lack of productivity in essential sectors like food production.
A few minutes into his elucidation, many people from his followers reacted in the comment section as you can read below.
According to Obi’s analysis, a significant portion of the country’s currency supply, approximately 88%, remains outside the banking system, indicating a broader systemic issue that monetary tightening alone cannot resolve.
