Adebayo Adenrele
The Governor of Edo State, Godwin Obaseki has said the recent increase in Cash Reserve Ratio (CRR) by the Central Bank of Nigeria (CBN) will not grow the economy of the country.
Obaseki stated this in Edo State, during the Annual Dinner of Edo Zone Bankers’ Committee.
The Governor noted that interest rates are high, an impetus that can’t allow small business to grow.
He enjoined the CBN to focus on fundamentals that will enhance production, adding that economic and monetary policies should not be determined by exchange rates alone.
His words, “The policies that have just been rolled out by the Central Bank unfortunately will not support growth in our economy.
“Interest rates are already very high and jacking up the interest rates clearly will not allow small borrowers, small businesses access the credit at a price to help them grow their businesses and when an economy is in this state, it needs all the push and support it can.
“While I understand the monetary rationale behind the recent increase in Cash Reserve Ratio (CRR) by the Central Bank of Nigeria (CBN), it must be stated that the effects will be detrimental to the nation’s economy and to small business holders.
“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 imports.
“Our economic policy and monetary policy cannot be determined by exchange rates alone.”
