Aliko Dangote, Chairman and Chief Executive Officer of Dangote Group, has criticized the recent interest rate hike to nearly 30% by the Central Bank of Nigeria (CBN).
Speaking at the opening session of a three-day summit organized by the Manufacturers Association of Nigeria (MAN) at the State House in Abuja on Tuesday, Dangote expressed concerns that businesses could not sustain operations at the current rate.
In May, following a two-day meeting, the CBN’s Monetary Policy Committee (MPC) decided to increase the Monetary Policy Rate (MPR) from 24.75% to 26.25%.
“Nobody can create jobs with an interest rate of about 30%. No growth will happen.”
Dangote underscored the need for the government to protect existing businesses, particularly manufacturers, by creating an enabling environment for them to thrive.
“I am convinced that when government policy becomes more supportive and protective, investors will be more willing to collaborate and partner with the government in resolving other challenges such as infrastructure deficits, market instabilities and macro-economic issues such as inflation and foreign exchange volatilities,” he said.
The business tycoon warned that an import-dependent economy is equivalent to importing poverty.
Dangote stressed that to tackle unemployment, poverty, and insecurity, the manufacturing sector must be empowered to operate effectively.
He urged a reconsideration of the country’s industrialization policy by taking cues from leading Western and Eastern nations that actively protect their domestic industries.
