CBN’s 26% interest rate stiffling growth, Dangote laments

Chairman and Chief Executive Officer of Dangote Group, Aliko Dangote, has criticised the latest increment of interest rate to almost 30 per cent by the Central Bank of Nigeria (CBN).

At the opening session of a three-day summit organised by the Manufacturers Association of Nigeria (MAN) in Abuja, on Tuesday, Dangote said businesses could not cope with the current rate.

In May, CBN’s Monetary Policy Committee (MPC) agreed to increase the Monetary Policy Rate (MPR) from 24.75 per cent to 26. 25 per cent.

But while speaking yesterday, Dangote said: “Nobody can create jobs with an interest rate of (about) 30 per cent. No growth will happen.”

He also called on the government to protect existing businesses in the country, especially manufacturers by providing an enabling environment for them to thrive.

According to him, an import-dependence country is equivalent to poverty importation.

“No power, no prosperity. No affordable financing, no growth, no development,” he explained. Dangote said for the government to address the challenges of unemployment, poverty and insecurity, the manufacturing sector must be empowered to function optimally.

MAN also criticised government policies and attitude, saying they were responsible for the low performance of the manufacturing sector.

The event had in attendance, Vice President Kashim Shettima and other government officials.

In his remarks, the President of MAN, Francis Meshioye said over 70 manufacturers have exited the sector between 2019 and 2022.