Ex-CBN director advises FG to invest more to generate employment

Dr Titus Okurounmu, ex-CBN Research Director, has advised the Federal Government to invest more in capital projects to generate employment opportunities.

Okurounmu gave the advice in an interview with the newsmen on Wednesday in Ota, Ogun.

He was reacting to the two-day Monetary Policy Committee’s decision to increase the Monetary Policy Rate (MPR) from 26.25 per cent to 26.75 per cent on Tuesday in Abuja.

The former CBN director noted that massive spending on capital projects would help lower price levels, making goods and services more accessible to Nigerians.

“Nigerians are not surprised by the MPC’s decision to increase the MPR because the country’s inflation rate is about 34.19 per cent.

“Also, the MPR should be above the inflation rate for any investors to make profits; anyone borrowing money now would be making losses,” he said.

Okurounmu emphasised the need for the Federal Government to address the fiscal side if they truly want to solve the inflation problem.

He stressed the necessity for the government to reduce recurrent expenditures, as the country’s budget is in deficit.

Okurounmu added that investing more in capital projects would generate employment opportunities, which would help reduce price levels and inflation rates and address insecurity challenges in the country.

Supreme News reports that CBN Governor Yemi Cardoso announced the MPC’s decision to raise the MPR by 50 basis points on Tuesday.

The committee also adjusted the asymmetric corridor around the MPR to +500/-100 from +100/-300 basis points.

It retained the Cash Reserve Ratio (CRR) of commercial banks at 45 per cent, merchant banks at 14 per cent, and also retained the Liquidity Ratio at 30 per cent.