July 03, (THEWILL) – The President of Dangote Group, Aliko Dangote, has raised concerns over high interest rates, saying “If the interest rate is 30 percent, there would not be any job creation because we are actually stifling growth.”
THEWILL recalls that the monetary policy committee (MPC) of the Central Bank of Nigeria (CBN), in May 2024, had raised interest rates from 24.75 percent to 26.25 percent.
CBN governor, Olayemi Cardoso, in a recent interview, vowed that interest rates would remain elevated until the inflation rate recedes. Cardoso emphasised that the MPC is prepared to take necessary measures to curb inflation, saying, “They will continue to do what has to be done to ensure that inflation comes down.”
However, speaking on Tuesday, during a three-day summit organised by the Manufacturers Association of Nigeria (MAN) in Abuja, Dangote said the country is battling “a very high” interest rate.
“Right now, at 30 percent, there is no way anybody can create jobs. If the interest rate is 30 percent, there would not be any job creation because we are actually stifling growth. So, interest rates can remain at 30 percent but then no growth will happen unless that interest rate goes down.”
According to Dangote, an import-dependent country is equivalent to poverty importation.
“No power, no prosperity. No affordable financing, no growth, no development”, he added.
Dangote said for the government to address the challenges of unemployment, poverty and insecurity, the manufacturing sector must be empowered to function optimally.
In his remarks, the President of MAN, Francis Meshioye, said over 70 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.
Also, MAN criticised government policies and attitude, saying they were responsible for the low performance of the manufacturing sector in the country.
The event had Vice President Kashim Shettima and other government officials in attendance.
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