Ononuju exposes CBN’s economic tricks and deceit

By Joshua Amaugo March 23, 2016 12:40

Ononuju exposes CBN’s economic tricks and deceit

The Monetary Policy Committee, MPC, of the Central Bank of Nigeria, CBN, on Tuesday, March 22, shocked members of the public, including international investors when it merely adjusted the Monetary Policy Rate, MPR, from 11 percent to 12 percent.

The disappointment is coming at a time Nigerians are subjected to cash crunch, unemployment, un-abating fuel queues and rising inflation, which have made the life of the common man unbearable.

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According to the CBN Governor, Godwin Emefiele, the Committee after the assessing the relevant internal and external indices, came to the conclusion that the balance of risks is tilted against price stability. The MPC he said therefore, voted to tighten monetary policy.

“The bank had adopted accommodative monetary policy since July 2015 in the hope of addressing growth concerns in the economy, effectively freeing up more funds for DMBs (Deposit Money Banks) by lowering both CRR and MPR, with excess liquidity arising from the lower CRR warehoused at the CBN”, Emefiele said.

A breakdown of the report showed that the MPC raised MPR by 100 basis points from 11.00 per cent to 12.00 per cent; raised the Cash Reserve Ratio, CRR, by 250 basis points from 20.00 to 22.50 percent, retained liquidity ratio at 30.00 per cent; and narrowed the asymmetric corridor from +200 and -700 basis points to +200 and -500 basis points.

Emefiele, added that the Deposit Money Banks, DMBs, were to access these funds by submitting verifiable investment proposals in the real sector of the economy.

In an Exclusive interview with Post-Nigeria, an Abuja based Developmental Economist, Katch Ononuju, while reacting to the decision of the CBN said, “The CBN, MPC, resolution to move MPR from 11 percent to 12 percent and Cash Reserve ratio from 20-20.50 percent amounts to nothing.

“The CBN has left the main problems of the Nigerian economy; by trying to deceive members of the public through movement of figures.

“The figures brandished yesterday has no connection with reality, we have had such meeting several times. In fact the National Economic Council, NEC, is also having theirs, but we have failed to tackle the problem from its root rather we are trying to handle the symptoms.

“CBN has end up confusing the masses as they were looking up to the ruling class to make and implement policies that will change their daily sufferings.”

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Speaking further he said, “The announcement does not have any positive impact on the economy, let’s go more practical, we are an import depended country, our exports has declined significantly, we don’t have the incentives that are needed, our people are looking for jobs, the naira is crashing. Look at our Gross Domestic Product, GDP, growth rate we are still struggling between 2-3 percent.

“Am disappointed, the figures they paraded do not have any bearing with the poor, what are we saying? Allow the naira to find its free flow, remove the subsidy, just yesterday the National Assembly approved N150 billion for subsidy payment, yet they said there is no subsidy on Premium Motor Spirit, PMS.

“These are the critical things we should be looking at, not moving figures from one base point to another which practical has no effect on the Nigerian economy.

“Let the CBN allow the economy to be competitive, when the CBN brings up the real solution to the problems, they also should be allowed to implement such actions and not trying to protect vested interest.”

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“I have said it time without number, subsidy has not been removed; the government has so far tried to deceive us.

“As am talking to you right now, people are queuing in filling stationS to buy fuel, people can no longer pay school fees, yet the President said he can afford it and let everybody who wants to pay for his child abroad do same.

“This was the same man that said he was poor that he borrowed money to buy his nomination form.

“If the Minister of State for Petroleum, Emmanuel Katchikwu, says it is cheaper to import than to refine locally, then we should allow importers to import freely without subsidy, stop issuing licence to government own Nigerian National Petroleum Corporation, NNPC, filling stations to import. Government has never done well in business,” Ononuju said.

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