THE CBN AND THE NEW POLICY – APGA CAUTIONS ON ADVERSE EFFECT AT THIS PRESENT ECONOMIC REALITIES – WRITTEN BY NDUKA ANYANWU, SA- MEDIA TO THE NATIONAL CHAIRMAN APGA, BARRISTER SLY EZEOKENWA
The cautionary stance of the All Progressives Grand Alliance (APGA) regarding the Central Bank of Nigeria (CBN) and its new policy reflects the party’s concerns about the potential adverse effects on the current economic realities in Nigeria. While specific details of APGA’s cautionary message may vary, however, the following impacts are renowned:
IMPACT ON SMALL AND MEDIUM ENTERPRISES (SME’s): APGA may express concerns about the potential negative impact of the new policy on SMEs, which are crucial for job creation and economic growth. If the policy imposes stringent regulations or restricts access to credit, – it
could hinder the ability of SMEs to operate and expand, leading to job losses and stunted economic development.
INFLATIONARY PRESSURE: APGA may caution against policies that could exacerbate inflationary pressures in the economy. If the new policy leads to a tightening of monetary conditions or limits
liquidity in the market, it could increase the cost of borrowing and reduce consumer spending power, potentially fueling inflationary trends and further burdening the populace.
Foreign Direct Investment (FDI) Concerns: APGA may express reservations about the potential impact of the new policy on foreign direct investment. If the policy creates uncertainty or restricts the inflow of foreign capital, it could deter potential investors and disrupt efforts to attract much-needed investments for infrastructure development and economic diversification.
EXCHANGE RATE STABILITY: APGA may emphasize the importance of maintaining exchange rate stability to promote trade, attract investments, and ensure confidence in the economy. If the new policy has unintended consequences that put pressure on the exchange rate or
introduce volatility, it could have ripple effects across various sectors and negatively impact import-dependent industries and the overall bUsiness environment.
IMPACT ON JOB CREATION: APGA may express concerns about the potential impact on job creation. If the policy leads to a contraction in economic activities or hampers the operations of businesses, it could result in layoffs and reduced employment opportunities. APGA may stress the importance of policies that support job creation and economic empowerment, particularly in a time of economic hardship.
ACCESS TO CREDIT: APGA may highlight the need for policies that promote access to credit for individuals and businesses. If the new policy restricts lending or increases borrowing costs, it could hinder the ability of businesses to invest, expand, and create jobs. APGA may advocate
for measures that ensure affordable and accessible credit for productive sectors of the economy, including small businesses and farmers.
SECTOR-SPECIFIC IMPLICATIONS: APGA may analyze the potential sector-specific implications of the new policy. Different sectors of the economy may be affected differently, and APGA could highlight the sectors that are particularly vulnerable or crucial for economic recovery. For example, agriculture, manufacturing, and tourism sectors may require targeted support to overcome the challenges posed by the policy and contribute to economic growth.
SOCIAL IMPACT: APGA may emphasize the potential social impact of the new policy on vulnerable populations. If the policy leads to higher prices, reduced purchasing power, or increased economic inequality, it could deepen the hardships faced by ordinary Nigerians.
APGA may advocate for policies that prioitize social protection, poverty alleviation measures, and inclusive economic growth to ensure that the most vulnerable segments of society are not
disproportionately affected.
LONG-TERM ECONOMIC SUSTAINABILITY: APGA may underscore the importance of policies that promote long-term economic sUstainability and resilience. While short-term measures may be necessary to address immediate challenges, APGA may caution against policies that could have negative long-term consequences or undermine the country’s overall economic stability and growth prospects. APGA may advocate for a balanced approach that considers both short-term relief and long-term sustainable development.
POLICY REVIEW AND ADJUSTMENT: APGA may call for periodic review and adjustment of the new policy based on its impact and feedback from stakeholders. Recognizing that policies may need to be adapted in response to changing economic circumstances, APGA may encourage a flexible and adaptive approach that allows for course correction if unintended consequences or adverse effects become apparent.
By elaborating on these points, APGA aims to raise awareness about the potential adverse effects of the new policy and encourage a comprehensive evaluation of its implications. The party seeks to promote dialogue, evidence-based decision-making, and policies that prioritize the well-being and economic advancement of the Nigerian people. And as such recommends
CONSULTATION AND STAKEHOLDER ENGAGEMENT: This consultative approach and increased stakeholder engagement in the formulation and implementation of monetary policies. The party highlight the importance of soliciting input from relevant stakeholders, including businesses, industry experts, economists, and civil society organizations, to ensure that policies are well-informed, balanced, and considerate of the broader economic realities and potential Consequences.
It’s important to note that the specific concerns expressed by APGA may depend on the details and implications of the new policy introduced by the CBN. APGA’s cautionary message is likely aimed at highlighting the need for a careful assessment of the potential impacts on the economy, particularly in light of the existing economic challenges faced by Nigerians. By raising these concerns, APGA aims to encourage a thoughtful and inclusive approach to policy-making that takes into account the welfare and interests of the Nigerian people.
For and on-behalf of Barrister Sly Ezeokenwa
APGA National Chairman
Signed:
Nduka Anyanwu
SA, Media to APGA National Chairman
