Once again, Obi bombarded the Nigerian government, saying monetary and fiscal policies were slowing economic growth.

Peter Obi, the Labour Party’s presidential candidate in the 2023 election, said the current monetary policy is slowing economic growth in Nigeria.

His comments came following a surprise statement by Aliko Dangote, Chairman of Dangote Industries Limited, on the negative impact of the Central Bank of Nigeria (CBN) monetary policy.

In a post on X on Thursday, Obi said Dangote’s latest outburst lent credibility to his previous criticism of the negative impact of the central bank’s monetary policy.

Obi said the negative impact of the policy on micro, small and medium enterprises (MSMEs) which are the engines of economic growth is very large.

“Prominent African businessman and respected Nigerian entrepreneur, Aliko Dangote, recently voiced his condemnation of the current interest rate of 30%, which reiterates my earlier condemnation in February of the negative impact of the current monetary policy of the federal government,” Obi said.

“According to Dangote, with such high interest rates, no jobs will be created because there will be no economic growth.

“This has been my consistent position all along. In February this year, I opposed the Monetary Policy Committee’s decision to increase the MPR to 22.5% and the CRR to 45% which I thought would further worsen the economic situation, as the increase would push lending rates above 30%, which would make it very difficult for manufacturers and MSMEs to borrow and repay.

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“If Dangote, Africa’s richest man and a leading industrialist, can complain, imagine the negative impact this policy will have on MSMEs, which are the engine of economic growth.

“To better understand the difficult economic environment exacerbated by this monetary policy, a recent report by the Manufacturers Association of Nigeria (MAN) stated “By 2023, 767 companies were closed and 335 became distressed.

“Capacity utilization in the sector has declined to 56%; effective interest rates are above 30%; foreign exchange for importing raw materials and unsold machinery inventory of finished products has risen to N350 billion and real growth has declined to 2.4%.”

The former Anambra governor said these harsh economic policies, both monetary and fiscal, have consistently slowed economic growth, driven multinational companies out of the country, hampered small businesses and discouraged foreign direct investment (FDI).

He urged the government to reverse the “bad trends” that are causing job losses, hampering production and hindering the shift from consumption to production.

Obi said the government must change course and implement policies that encourage growth and the creation of a new Nigeria.

By: Babajide Okeowo

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