Decision of MPC to raise MPR, CRR, will worsen economic crisis, job losses    –Peter Obi

Peter Obi, the presidential candidate of the Labour Party in the 2023 general election, has raised concerns regarding the recent decision by the Monetary Policy Committee (MPC) to increase the Monetary Policy Rate (MPR) to 22.5% and the Cash Reserve Ratio (CRR) to 45%.

Obi cautioned that this action could worsen the existing economic challenges faced by numerous Nigerian households.

In a statement shared on X on Thursday, the former governor of Anambra state expressed a firm viewpoint that the MPC’s decision might negatively impact the economy, particularly affecting ordinary citizens grappling with increasing inflation and unemployment rates.

“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,” he said.

Highlighting the necessity for policies prioritising economic recovery and addressing underlying crises, including insecurity, Obi urged policymakers to explore alternative measures fostering growth and easing the financial strain on Nigerian households.

He said, “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.”

He advocated for a comprehensive approach to economic management, considering the long-term well-being of the populace.