Dangote slams CBN’s 26% interest rate hike

The Chairman and Chief Executive of the Dangote Group, Aliko Dangote, has said the latest increase in interest rate to almost 30 per cent by the Central Bank of Nigeria will hurt local manufacturing businesses.

Dangote stated this during the opening session of a three-day National Manufacturing Policy Summit Organised by the Manufacturers Association of Nigeria at the Banquet Hall of the State House, Abuja on Tuesday.

“Nobody can create jobs with an interest rate of 30 per cent. No growth will happen,” he said.

His comments come weeks after the CBN’s Monetary Policy Committee, in May, agreed to increase the Monetary Policy Rate for the third consecutive time from 24.75 per cent to 26.25 per cent.

The Monetary Policy Committee held its 295th meeting on May 20-21, 2024 to review recent economic and financial developments in the country and to assess risks.

After the meeting it resolved to “Raise the MPR by 150 basis points to 26.25 per cent from 24.75 per cent,” the CBN Governor, Yemi Cardoso, who chairs the MPC announced.

However, while delivering his address at the manufacturer’s summit on Tuesday, Dangote said no growth is foreseeable under such circumstances.

The business magnate 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, import-dependence equates to poverty importation.

“…No growth will happen. No Power, no prosperity. No affordable financing, no growth, no development,” he explained.

Dangote argued that for the government to address the challenges of unemployment, poverty and insecurity, the manufacturing sector must be empowered to function optimally.

In attendance were Vice President Kashim Shettima and other government officials.

Details shortly…