You won't believe this! Dangote criticizes CBN’s new interest rate

• Aliko Dangote, has chastised the Central Bank of Nigeria (CBN) for the latest hike in interest rates
• This came after the CBN's Monetary Policy Committee voted to raise the MPR for the third time in a row in May
• He also urged the government to protect the country's established businesses, especially the manufacturing sector

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Aliko Dangote, the chairman and CEO of the Dangote Group, has criticised the Central Bank of Nigeria (CBN) for its most recent interest rate increase, which brought it to nearly 30%.

Dangote urged the government to safeguard already-existing companies in the nation. Photo Credit: Dangote, FG
Source: UGC

Dangote said businesses could not keep up with the present rate while addressing the audience on Tuesday 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).

Recall that the Monetary Policy Committee (MPC) of the CBN decided to raise the MPR from 24.75% to 26.25% in May, marking the third consecutive hike, after a two-day meeting.

CBN Governor, Yemi Cardoso who is also the MPC chairman said,

“The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 295th meeting on the 20th and 21st of May 2024 to review recent economic and financial developments and assess risks to the outlook.“Decisions of the MPC. The committee’s decisions are as follows: 1. Raise the MPR by 150 basis points to 26. 25 per cent from 24.75 per cent.”

Dangote did, however, observe that "nobody can create jobs with an interest rate of 30%" during his remarks at the manufacturer's summit on Tuesday.

He also exhorted the government to safeguard already-existing companies in the nation, particularly manufacturers, by creating an atmosphere that fosters their success.

He claims that a nation dependent on imports is the same as one that imports poverty.

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

Dangote stated that the manufacturing sector needs to be given the tools it needs to operate at its best so that the government can address the issues of unemployment, poverty, and insecurity.

The MAN also attacked government attitudes and policies, claiming they were to blame for the nation's industrial sector's poor performance.

Vice President Kashim Shettima, along with other government representatives, attended the ceremony.

MAN President Otunba Francis Meshioye stated in his speech that between 2019 and 2022, more than 70 manufacturers have left the industry.

In order to further the goals of the current administration, he added, it was necessary to assess the situation and reconsider how to assist industrial companies.

Nigeria missing on list of cheap fuel countries

Legit.ng reported that diesel is the primary energy source for many different kinds of machinery, including electricity-producing generators, in several African countries.

High diesel prices could be a major hindrance to the development of many African nations, especially if it is difficult for the common citizen to afford this liquid fuel.

If there are few alternatives to diesel-powered engines and the economy is heavily reliant on diesel, then the high cost of diesel can also cause issues.

Source: Legit.ng