Peter Obi, presidential candidate of the Labour Party in the 2023 election, says the current monetary policy is slowing economic growth.

In a post on X on Thursday, Obi said the recent outcry of Aliko Dangote, chairman of Dangote Industries Limited, supports his earlier criticisms of the negative effects of the monetary policy of the Central Bank of Nigeria (CBN).

On July 2, Dangote said the increase of interest rate to almost 30 percent by the CBN will stifle growth. 

He added that the country is battling “a very high” interest rate.

The monetary policy committee (MPC) of CBN, on May 21, raised the monetary policy rate (MPR) — on which banks benchmark their interest rate — from 24.75 percent to 26.25 percent.

Obi said the negative impacts of the policy on micro, small and medium enterprises (MSMEs), which are the engine of economic growth, are significant.

“Africa’s foremost entrepreneur and respected Nigerian businessman, Aliko Dangote’s recent outcry against the current interest rate of 30%, underscores my earlier cry in February on the negative effects of the monetary policy of the present federal government,” Obi said.

“According to Dangote, no jobs will be created with such a high interest rate because there will be no growth in the economy.

“This has been my consistent position over time. In February this year, I argued against the decision of the Monetary Policy Committee on MPR to 22.5% and CRR to 45% increases which, in my opinion, would further worsen the economic situation, as the increases would push interest rates on loans to above 30%, which would be very difficult for manufacturers and MSMES to borrow and repay.

“If Dangote, the richest person in Africa, and foremost industrialist, can complain, then imagine the negative impacts of these policies on MSMEs who are the engine of economic growth.

“To further understand the harsh economic environment that this monetary policy had exacerbated, the recent report from the Manufacturing Association of Nigeria (MAN) stated “In 2023, 767 companies were shut down and 335 became distressed.

“The capacity utilisation in the sector has declined to 56%; the interest rate is effectively above 30%; foreign exchange to import raw materials and production machine inventory of unsold finished products has increased to N350 billion and the real growth has dropped to 2.4%.”

The former Anambra governor said these harsh economic policies, both monetary and fiscal, have persistently slowed down economic growth, driven multinationals out of the country, stifled small businesses and discouraged the inflow of foreign direct investment (FDI).

He urged the government to reverse the “ugly trend” causing job losses, discouraging production, and hindering movement from consumption to production.

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

A federal high court in Abuja has invalidated the Peoples Democratic Party (PDP) primary election that produced Asue Ighodalo as the candidate for the forthcoming gubernatorial poll in Edo.

In the ruling delivered on Thursday, Inyang Ekwo, presiding judge, held that the PDP primary held on February 22 failed to comply with the provisions of the Electoral Act 2022 and the party’s constitution.

Ekwo held that from the exhibit tendered in court, the returning officers who prepared the result sheets only sat in one place to falsify the outcome of the poll.

He said the exclusion of the 381 delegates, including the plaintiffs, was against the provisions of the law.

The judge further held that even though the Independent National Electoral Commission (INEC) filed a memorandum of appearance in the suit, it was unfortunate that the commission did not file any process in the case.

Rather, the electoral umpire had said they would abide by whatever the ruling of the court is.

“I found that the case of the plaintiffs succeeds on merit,” he said.

Three aggrieved ad hoc delegates had filed the suit marked FHC/ABJ/CS/165/2024 on behalf of the 378 other delegates.

The plaintiffs are Kelvin Mohammed, Gabriel Okoduwa and Ederaho Osagie, on behalf of the 378 others in 12 LGAs and 127 wards.

INEC, the PDP, its national secretary and the vice chairman of the south-south, were joined as 1st to 4th defendants in the suit.

The 381 delegates are those loyal to Philip Shaibu, the impeached deputy governor of the state.

BACKGROUND

On February 4, the PDP conducted a congress to select delegates who would participate in the party’s February 22 governorship primary.

Before the congress, Seyi Makinde, governor of Oyo, who was appointed as the chairman of the election committee, rejected the appointment.

Makinde said the list of electoral officers for the election contained names from Delta state and those of officials of the Edo state government.

Nine of the 11 PDP governorship aspirants, including Shaibu, former deputy governor of the state, boycotted the exercise.

The aspirants rejected the composition of the committee for the delegates’ election.

Tony Aziegbemi, chairman of the PDP in Edo, asked aggrieved governorship hopefuls to approach the appeal panel.

Ighodalo, a businessman, won the governorship primary conducted on February 22.

Ighodalo was the preferred candidate of Godwin Obaseki, governor of Edo.

Shaibu has since been expelled by the Edo state chapter of the PDP.

The Edo governorship election has been slated for September 21, 2024.

Former speaker of the House of Representatives, Yakubu Dogara, said yesterday his total allowance in office was N25 million and salary N400,000 monthly.

The clarification Dogara said was necessary, following public misconception that members of the National Assembly earned huge salaries and allowances.

Recall that Yakubu Dogara was the Speaker of the 8th Assembly. Speaking during a Goodwill message at the two days ‘House Open Week 2024’ organised by the House of Representatives as part of the celebration of 25 years of unbroken democracy in the country,

Dogara said it was important Nigerians allowed their representatives to work and limit the financial demands on them .

He said further that the misconception of huge salaries and allowances by Nigerians had given the National Assembly a negative image, to the extent that lawmakers were called thieves at public fora.

The former speaker said he suffered the same fate as a member of the House of Representatives and as speaker because of the belief by Nigerians that lawmakers collect millions as salaries and allowances monthly at the expense of Nigerian workers.

Dogara noted that, his salary was N400,000 while he had the sum of N25 million monthly as the Speaker of the 8th Assembly.

He said:  “While I was speaker, my salary was N400and my total allowance was N25 million.  I told my accountant to open a separate account for the allowances and I never for once took any money out of that account.   Everything that came into that account was used to cater for the needs of constituents.

“My accountant complained of the level of demand on the account and I told him if the money there is finished, borrow, when money comes in, you return to were you had taken money from.

“I am saying this so Nigerians will give their legislators breathing space and know that the narrative is not true about members pay.”

He said as a result of the speculations about the earnings of the members of the 8th House, he ordered that the breakdown of the House budget be made public, including what he was entitled to as the speaker.

He, however, noted that the practice discontinued, which gave room for the continuation of speculations and outright lies about the earnings and entitlements of lawmakers till date.

Dogara further acknowledged the notion that Nigeria’s democracy was expensive, adding that many countries were complaining about the cost that comes with the practice and maintenance of democracy.

He, therefore, challenged the country’s political scientists to help fashion out an alternative, homegrown form that would be less expensive and meet the yearnings and needs of Nigerians.

[Vanguard]