Former governor of Anambra State, Peter Obi, thinks that if the Federal Government addresses the issues of insecurity appropriately, then the country will see a great increase in the production of food and oil.
In a statement shared on X (formerly Twitter) on Thursday, Mr Obi noted that the Monetary Policy Committee’s decision to increase the Monetary Policy Rate (MPR), to 22.5% and the Cash Reserve Ratio (CRR), to 45%, is a counterproductive measure to easing Nigeria’s current economic crisis.
Obi who was Labour Party’s Presidential Candidate in the last election, was of the opinion that tightening liquidity in the financial system does not improve productivity, i.e. food production, which he asserts is the major cause of inflation in Nigeria.
In proffering a way out of the economic hardship, Mr Obi noted that “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,” Obi opined.
According to him, what the Nigerian economy needs at the moment is hard-headed practical originality and results.
“Tinkering with classical economic theories can only deepen our crisis,” the LP flagbearer stressed.
