An advisor and treasury manager, Daniel Akeju, has faulted the Central Bank of Nigeria’s (CBN) recent increase in the Monetary Policy Rate (MPR) in an attempt to curb inflation and stabilize the economy.
Akeju, a Chartered Institute of Treasury Management (CITM) member, expressed his opinions to reporters in Abuja on Thursday.
The CBN raised MPR from 18.75% to 22.75% in February, a 400 basis point rise. In March, it was raised by 200 basis points to 24.75 percent, and as of May, has been raised by 150 basis points to 26.75 percent.
Akeju stated that the problems confronting Nigeria's economy call for a more comprehensive strategy than just increasing the MPR.
He opined that containing inflation has to be done with policies that address the underlying causes of unstable economies.
A more effective approach would include supply-side initiatives, increased security, economic diversification, and social safety nets, he pointed out.
“By adopting these comprehensive measures, Nigeria can build a resilient economy that provides prosperity and security for all its citizens. The time for such a transformative approach is now”, he added.
The treasury manager urged the CBN to concentrate more on industrialization, targeted social programs, improved security, farm assistance, and monetary and fiscal cooperation.
