Aliko Dangote, Chairman of the Dangote Group, has voiced criticism against the Central Bank of Nigeria (CBN) for its recent decision to raise the interest rate to nearly 30 percent. Speaking at the Banquet Hall of the State House in Abuja during the opening session of a three-day summit organized by the Manufacturers Association of Nigeria (MAN) on Tuesday, July 2, Dangote expressed deep concerns regarding the adverse impact of the current interest rate regime on job creation and the growth of the manufacturing sector.
During the CBN's latest Monetary Policy Committee (MPC) meeting, the Monetary Policy Rate (MPR) was increased for the third consecutive time, escalating from 24.75 percent to 26.25 percent. Dangote emphasized the debilitating effect of such high interest rates on the ability of businesses, especially manufacturers, to generate employment and expand their operations.
"Nobody can create jobs with an interest rate of 30%. No growth will happen," Dangote asserted, underscoring the formidable challenges faced by manufacturers in competing and scaling up under these stringent financial conditions. He called for the implementation of new policies aimed at safeguarding domestic industries and urged the government to foster a conducive environment that supports the growth of existing businesses.
Dangote further elaborated, "We must draw lessons from leading economies in the West and East that actively shield their domestic industries. Dependency on imports equates to importing poverty and exporting jobs. Without adequate power supply and affordable financing, there can be no growth or prosperity. Industrialization cannot thrive without protective measures. Ignoring these realities contributes to insecurity, banditry, kidnapping, and entrenched poverty."
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