Aliko Dangote, chairman of the Dangote Group, has denounced the Central Bank of Nigeria’s (CBN) decision to raise interest rates to almost 30 per cent.
Speaking at the opening session of the three-day summit organized by the Manufacturers Association of Nigeria (MAN) in the State House’s Banquet Hall, Abuja, Aliko Dangote, voiced his concern that the present high-interest rate policy of the Central Bank of Nigeria (CBN) is making it extremely difficult for businesses to create jobs. He emphasized that this situation is not only detrimental to businesses but also has far-reaching negative effects on the economy as a whole.
Dangote continued by emphasizing that the high-interest rate policy of the CBN is not just stunting job creation, but is also hindering the growth and competitiveness of the manufacturing industry. In his address at the summit, he stressed the urgent need for new policies that will safeguard domestic industries and foster economic growth. Dangote’s statement that, “Nobody can create jobs with an interest rate of 30%. No growth will happen,” resonated with his audience as a stark warning of the economic consequences of the current interest rate regime.
In addition to his concerns about the interest rate policy, Dangote also made a plea to the government to prioritize the protection of domestic industries, particularly manufacturers. He highlighted the importance of providing an enabling environment that allows existing businesses to flourish, rather than facing the threat of stagnation or decline.
Africa’s richest man further likened an import-dependence to poverty importation. “Import dependence is equivalent to importing poverty and exporting jobs. No power, no growth, no prosperity. Similarly, no affordable financing, no growth, no prosperity. There is no industrialization without protection Ignoring these facts, is what gives rise to insecurity, banditry, kidnapping and abject poverty,” he said.
At its last Monetary Policy Committee (MPC) meeting, CBN agreed to increase the Monetary Policy Rate(MPR) for the third straight time from 24.75 per cent to 26. 25 per cent.
