Dangote tackles CBN’s hike in interest rate, says nobody can create jobs

The Chairman of the Dangote Group, Aliko Dangote, has criticised the hike of interest rate to almost 30 per cent by the Central Bank of Nigeria (CBN).

The CBN has increased Monetary Policy Rate (MPR) or interest rate to 26.25 per cent as of May 2024  from 18.75 per cent early  in the year as its drive to tackle inflation rate and stable the foreign exchange market. 

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

Speaking at the Banquet Hall of the State House, Abuja, during the opening session of a three-day summit organised by the Manufacturers Association of Nigeria (MAN), on Tuesday, he said with the present interest rate regime, it will be difficult to create jobs.

He added that it would also be tough for the manufacturing industry to grow and compete favorably. Dangote, who also called for new policies that will protect domestic industries, said, “Nobody can create jobs with an interest rate of 30%. 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, “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 industrialization without protection Ignoring these facts, is what gives rise to insecurity, banditry, kidnapping and abject poverty,” he said.