CBN’s Interest Rate Surge Threatens Business Survival, Job Creation – Dangote Warns

ABUJA, FCT, NIGERIA – Aliko Dangote, Chairman of the Dangote Group, sounded a stark warning against the Central Bank of Nigeria’s recent decision to raise interest rates to nearly 30 percent.

Speaking at a summit organized by the Manufacturers Association of Nigeria (MAN), Dangote emphasized that such a steep interest rate hike would severely impact businesses across the country.

According to Dangote, the current interest rate regime makes job creation almost unattainable and poses significant challenges to the growth and competitiveness of the manufacturing sector.

He lamented that with an interest rate of 30 percent, the conditions for economic growth are stifled, making it exceedingly difficult for industries to flourish.

Highlighting the recent increase in the Monetary Policy Rate (MPR) to 26.25 percent, Dangote criticized the policy direction, asserting that sustainable economic policies should prioritize the protection of domestic industries.

He called upon the government to foster an environment conducive to business success, particularly for manufacturers.

Drawing parallels with global economic practices, Dangote urged Nigeria to emulate leading nations in the West and East by implementing policies that safeguard domestic industries.

He underscored the detrimental impact of import dependency, equating it to importing poverty while exporting job opportunities.

Dangote emphasized that without adequate power supply and affordable financing options, industrialization and economic prosperity would remain elusive.

Dangote however warned against neglecting these economic realities, which he argued contribute to rising insecurity, including banditry, kidnapping, and widespread poverty.

He urged policymakers to prioritize protecting existing businesses and fostering an environment conducive to sustainable economic growth in Nigeria.