Dangote condemns new interest rate, urges FG to safeguard local businesses

Dangote condemns new interest rate, urges FG to safeguard local businesses

The chairman of the Dangote Group and Africa’s richest man, Aliko Dangote, has criticised the Central Bank of Nigeria (CBN) over the recent hike of interest rate to nearly 30 per cent.

Delivering his remarks at the opening session of a three-day summit organised by the Manufacturers Association of Nigeria (MAN) at the Banquet Hall of the State House, Abuja, on Tuesday, Dangote expressed concerns that the current interest rate regime would hinder job creation.

He emphasised that the high interest rates would pose challenges for the manufacturing industry to expand and compete effectively.

Dangote stressed the need for new policies that would safeguard local industries, stating, “It is impossible to generate employment with a 30% interest rate. There will be no growth.”

READ ALSO: CBN raises MPR interest rate to 18.75%

Furthermore, he urged the government to prioritise safeguarding existing businesses in Nigeria, particularly those in the manufacturing sector, by establishing a conducive environment for their success.

According to him, “We must look to leading countries in the West and the East who are actively protecting their domestic industries.”

Africa’s richest man further likened an import-dependence to poverty importation.

“Import dependence is equivalent to importing poverty and exporting jobs. No power, no growth, no prosperity. Similarly, no affordable financing, no growth, no prosperity. There is no industrialisation without protection Ignoring these facts, is what gives rise to insecurity, banditry, kidnapping and abject poverty,” he said.

At its last Monetary Policy Committee (MPC) meeting, CBN agreed to increase the Monetary Policy Rate (MPR) for the third straight time from 24.75 per cent to 26. 25 per cent.