Former Governor of Anambra State, and the presidential candidate of the Labour Party, Mr. Peter Obi, has revealed how he would solve the high inflation rate ravaging the Nigeria economy and other economic problems which have contributed to the devaluation of the naira.
Newsonline reports that the Labour Party presidential candidate said that his administration when elected will stop borrowing for consumption.
Peter Obi said all loans must be invested in regenerative projects as inflation is a factor of spending on goods and services outstripping production.
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Obi spoke this while addressing Nigerians in the diaspora in New York, the United States of America.
“We will stop borrowing for consumption. All loans must be invested in regenerative projects. Inflation is a factor of spending on goods and services outstripping production. Since we have not resolved the minimum wage issue, we will not use wage and price controls to fight inflation. Rather, we will pursue a contractionary monetary policy. We will mop up excess liquidity by reducing the money supply within an economy.
“The truth is that for long, market forces have not determined the exchange rate of the Naira. The two-tier foreign exchange regime is a fluke. It has to end. Let the exchange rate be determined by the forces of demand and supply. It is that simple,” he said.
Speaking on his plan for small and medium start-ups, Peter Obi said, “Flutterwave, on its own, was recently valued at US$3 billion. We will create an enabling environment for our startups to thrive. Beyond creating access to easy funding, We will enforce the legal framework protecting foreign investors and their indigenous partners. This is the only way to improve our business environment and tamper capital flight.
“Government must continue to collaborate with the organized private sector in this regard. Creating the enabling environment for raising employment must start with expanding the SMEs cluster via unfettered access to funding.”
