By using this site, you agree to the Privacy Policy and Terms & Conditions.
Accept
Okay.ngOkay.ngOkay.ng
Font ResizerAa
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Reading: MPR Hikes Fueling Inflation, Not Curbing It – Taiwo Oyedele
Share
Font ResizerAa
Okay.ngOkay.ng
  • News
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Search
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Follow US
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
© OKN MEDIA PUBLISHING 2022 - All rights reserved
News

MPR Hikes Fueling Inflation, Not Curbing It – Taiwo Oyedele

Genesis Obong
By Genesis Obong
Published: January 23, 2025
Share
4 Min Read
Taiwo Oyedele
SHARE

Experts have over time described the Central Bank of Nigeria (CBN) policy approach of increasing the Monetary Policy Rate (MPR) as a means to curb inflation as not a suitable approach for the Nigerian Economy. Contributing to the growing chorus of voices is the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele. He contends that the CBN’s aggressive MPR hikes are not only failing to curb inflation but are actively fueling it, exacerbating the economic hardships faced by ordinary Nigerians.

Speaking at a recent forum organized by PwC and BusinessDay, Oyedele presented a compelling case against the current monetary policy approach. He explained that businesses, already grappling with exorbitant borrowing costs ranging from 35% to 40%, are forced to pass these costs onto consumers through higher prices, creating a vicious cycle of inflation.

“The MPR, as far as I’m concerned, was a factor pushing inflation up, not bringing it down,” he asserted.

This situation is further compounded by the persistent undervaluation of the naira, a critical factor that Oyedele passionately emphasized. “I do not think that N1,500/$ is the fair value of the naira. I think the naira is undervalued,” he declared.

- Advertisement -

Read Also: Illicit Demand, Not Supply, Cripples Naira – Taiwo Oyedele

He argued that a crucial step towards economic stability lies in addressing the exchange rate issue through increased transparency in foreign exchange markets and a comprehensive suite of structural reforms.

The impact of these challenges is starkly evident in the manufacturing sector, where businesses are burdened with over N1 trillion worth of unsold inventory. This inventory glut is a direct consequence of high interest rates, which stifle consumer demand, and the overall economic slowdown.

Oyedele advocated for a fundamental shift in policy. Instead of relying solely on blunt instruments like blanket MPR adjustments, he urged policymakers to address the root causes of inflation. These include volatile exchange rates, an inefficient taxation system, and the lack of adequate support for local production.

- Advertisement -

While acknowledging the current economic headwinds, Oyedele expressed cautious optimism about the possibility of easing inflationary pressures in 2025 due to a potential decline in external shocks. However, he stressed the paramount importance of fiscal discipline and transparency in government spending. “If government spending is from sustainable sources like taxes or resource revenues and not from printing new money, the impact on inflation is muted,” he explained, drawing a parallel to the economic models of Nordic countries renowned for their fiscal prudence.

The undervaluation of the naira and the misguided reliance on MPR hikes underscore a deeper flaw in Nigeria’s current economic strategy. Oyedele’s insights serve as a critical wake-up call, highlighting the urgent need for a paradigm shift in both monetary and fiscal policies. This shift must prioritize structural reforms, sustainable growth, and a more nuanced approach to addressing the complex challenges facing the Nigerian economy.

The question now facing Nigeria is whether policymakers will heed these warnings and embrace a more sustainable path or continue to grapple with the consequences of outdated and ineffective policies. The choices made today will undoubtedly shape the nation’s economic trajectory for years to come.

Stay Updated on the Go with Our Latest News—Join Our WhatsApp Channel Now!
TAGGED:InflationMonetary Policy RateMPRTaiwo Oyedele
Share This Article
Facebook Whatsapp Whatsapp Telegram Email Copy Link Print
ByGenesis Obong
Follow:
Genesis Obong is a Journalist with relevant experience in Business, Finance and Economic matters in Nigeria and across the West African space.
Previous Article Oando Wins Angola's Block KON 13 Oando Secures Block KON 13 in Angola, Expanding African Footprint
Next Article Foreign Exchange Reserved Nigeria’s Foreign Reserves Plummet by $832 Million in January

Connect with Okay on Social

FacebookLike
XFollow
InstagramFollow
TelegramFollow

Dollar/Naira Rates

Dollar to Naira Exchange Rate

Okay.ng Logo
Buy Rate ₦1,605.00
Sell Rate ₦1,620.00

Last updated: 4 days ago (June 3, 2025 2:33 pm)

Displayed rates are for informational purposes only and are subject to change.

USD/NGN Converter

- Advertisement -
- Advertisement -
Ad imageAd image
- Advertisement -
Ad imageAd image

Recent Posts

Super Eagles Rally to Draw Against Russia in International Friendly
Sport
Manchester United Raises Annual Core Profit Forecast to Between £180m and £190m After Europa League Boost
Sport
Ange Postecoglou
Tottenham Hotspur Part Ways with Ange Postecoglou Despite Europa League Glory
Sport
Dangote Names Main Refinery Access Road “Bola Ahmed Tinubu Road” in Honor of President
News
L-R: Ify Okoye, Digital Creator; Linda Ejiofor-Suleiman, Actress; Stella Erebor, Head Internal Audit, Nigerian Communications Commission; Emanuella Samuel, Comedienne/Actress, Sylvia Musalagani, Safety Policy Manager, Africa, Middle East & Turkey (AMET), Meta, and Nicole Chikwe, founder of The Mummy Summit, during the launch of Instagram teen accounts in Lagos on Wednesday, June 4, 2025
Meta Launches Teen Accounts on Instagram in Nigeria to Enhance Online Safety for Young Users
Tech
- Advertisement -
Ad imageAd image

You May Also Like

News

President Tinubu and Top Officials Attend Eid-el-Kabir Prayers in Lagos, Emphasize Peace and Progress

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 6, 2025
International

Elon Musk’s Net Worth Plummets $34 Billion Amid Explosive Feud with Donald Trump

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 6, 2025
PoliticsTop stories

BREAKING: Akwa Ibom Governor Pastor Umo Eno Defects from PDP to APC in Strategic Political Shift

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 6, 2025
Okay.ngOkay.ng
Follow US
© OKN MEDIA PUBLISHING 2025 - All rights reserved
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
adbanner
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?