Chairman and Chief Executive of the Dangote Group, Aliko Dangote, has criticized the recent increase in the interest rate to almost 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 Banquet Hall of the State House, Abuja, on Tuesday, Dangote expressed concern that businesses cannot cope with the current rate.
In May, following a two-day meeting, the CBN’s Monetary Policy Committee (MPC) decided to raise the Monetary Policy Rate (MPR) from 24.75% to 26.25%.
CBN Governor Yemi Cardoso, who is also the MPC chairman, stated, “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. The committee’s decisions are as follows: 1. Raise the MPR by 150 basis points to 26.25% from 24.75%.”
During the summit, Dangote noted, “Nobody can create jobs with an interest rate of 30%. No growth will happen.”
He emphasized the need for the government to protect existing businesses, particularly manufacturers, by providing an enabling environment for them to thrive.
According to Dangote, “an import-dependent country is equivalent to poverty importation. No power, no prosperity. No affordable financing, no growth, no development.”
Dangote highlighted that for the government to address challenges such as unemployment, poverty, and insecurity, the manufacturing sector must be empowered to function optimally.
MAN also criticized government policies and attitudes, attributing them to the low performance of the manufacturing sector in the country.
The event, which included Vice President Kashim Shettima and other government officials, saw MAN President Otunba Francis Meshioye remark that over seventy manufacturers had exited the sector between 2019 and 2022.
He called for a reassessment and support for manufacturing businesses to achieve the current administration’s agenda.