Aliko Dangote, the Chairman and Founder of the Dangote Group criticized the Central Bank of Nigeria’s (CBN) latest interest rate hike to almost 30 percent.
Addressing participants during the opening session of a three-day summit organized by the Manufacturers Association of Nigeria (MAN) at the Banquet Hall of the State House in Abuja on Tuesday, Dangote stated that businesses could not cope with the current interest rate.
The billionaire industrialist cautioned that the Central Bank’s aggressive monetary tightening policy was placing undue strain on the operations of companies across various sectors of the economy.
Dangote, however, urged the central bank to reconsider its stance and implement a more business-friendly interest rate regime to support the growth and competitiveness of the Nigerian private sector.
In May, following a two-day meeting, CBN’s Monetary Policy Committee (MPC) agreed to increase the Monetary Policy Rate (MPR) for the third straight time from 24.75 percent to 26. 25 per cent.
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 percent from 24.75 percent,” CBN Governor, Yemi Cardoso who double as the MPC chairman said.
However, while speaking during the manufacturer’s summit on Tuesday, Dangote noted that nobody can create jobs with an interest rate of 30%, as 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.
In the same vein, MAN also criticized government policies and attitude, saying they were responsible for the low performance of the manufacturing sector in the country.
The event had in attendance, Vice President Kashim Shettima and other government officials.
In his remarks, the President of MAN, Otunba Francis Meshioye said over seventy manufacturers have exited the sector between 2019 and 2022.
He said it was time to take stock and rethink a way to support manufacturing businesses, to achieve the agenda of the current administration.
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