Peter Obi Commends Cardoso-Led CBN Reforms, Blames Fiscal Policies for Nigeria's Economic Crisis

Peter Obi Commends Cardoso-Led CBN Reforms, Blames Fiscal Policies for Nigeria's Economic Crisis

2027 presidential candidate Peter Obi has praised the Central Bank of Nigeria (CBN) under Governor Olayemi Cardoso for implementing credible monetary reforms but insists that poor fiscal policies, corruption and excessive government spending remain the biggest obstacles to Nigeria's economic recovery.

Speaking during an interview with media personality Rufai Oseni, the former Anambra State governor said the CBN has made notable progress in restoring confidence in the economy through monetary policy, but those gains are being undermined by what he described as reckless fiscal management.

Peter Obi Backs CBN Monetary Reforms

Obi acknowledged that the Cardoso-led CBN has taken important steps to stabilise Nigeria's economy through tighter monetary policy, foreign exchange reforms, improved liquidity management and measures aimed at strengthening investor confidence.

According to him, the monetary authorities are largely moving in the right direction.

«"Today we have a monetary side. What the CBN is doing on the monetary side is being fairly well run, but unfortunately you have a reckless fiscal side," Obi said.»

He stressed that monetary policy alone cannot deliver sustainable economic growth without responsible fiscal governance.

"Nigeria's Biggest Economic Problem Is Fiscal Mismanagement"

Obi argued that Nigeria's persistent economic challenges are rooted in fiscal indiscipline rather than monetary policy.

He blamed the country's worsening economic conditions on excessive government spending, waste, leakages and corruption, saying these factors continue to erode the benefits of major economic reforms.

«"The fiscal side has always been the problem of Nigeria."»

According to Obi, reducing the cost of governance and tackling corruption should be the government's highest priorities.

Obi Questions Rising Government Revenue Despite Growing Poverty

The former governor also questioned why increasing government revenue has failed to improve the lives of ordinary Nigerians.

He noted that while government revenue reportedly rose from about ₦16 trillion to over ₦30 trillion, poverty levels have continued to increase.

«"Where is this increase? Where is it impacting? The more they increase revenue, the more they throw people into poverty."»

Obi argued that increasing taxes without expanding production only places additional pressure on households and businesses.

Calls for More Investment in Power, Education and Healthcare

Obi urged the Federal Government to prioritise investments that drive productivity and long-term economic growth.

He identified key sectors requiring urgent investment, including:

- Electricity and power generation

- Education and skills development

- Healthcare

- Manufacturing

- Infrastructure

According to him, stronger productivity—not heavier taxation—is the key to sustainable economic development.

Obi Reaffirms Support for Subsidy Removal

Obi reiterated that he supports fuel subsidy removal and exchange rate reforms but maintained they should have been implemented through a carefully planned and transparent strategy.

He argued that subsidy savings should be invested in critical sectors while simultaneously reducing corruption and the high cost of governance.

Without fiscal discipline, he warned, the benefits of economic reforms will continue to bypass ordinary Nigerians.

Experts Say Monetary and Fiscal Policies Must Work Together

Economic experts have consistently maintained that monetary and fiscal policies must complement one another to achieve macroeconomic stability.

While the CBN focuses on inflation, exchange rate stability and financial sector resilience, fiscal authorities are responsible for prudent public spending, infrastructure development and creating an environment that supports investment and job creation.

Obi concluded that only a coordinated economic strategy—built on sound monetary management, disciplined fiscal policies, productive investments and a determined fight against corruption—can restore sustainable growth and improve living standards across Nigeria.

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