Aliko Dangote criticizes CBN's 26.25% interest rate hike at MAN summit, arguing it hinders business growth and job creation. He calls for government support of manufacturers to address economic challenges. MAN reports significant sector exits, highlighting the need for policy reforms to boost Nigeria's manufacturing industry.
Aliko Dangote, Chairman of the Dangote Group, has voiced strong criticism against the Central Bank of Nigeria's recent interest rate hike. Speaking at a Manufacturers Association of Nigeria (MAN) summit in Abuja, Dangote argued that the current interest rate of nearly 30% is unsustainable for businesses.
The CBN's Monetary Policy Committee raised the Monetary Policy Rate to 26.25% in May, marking the third consecutive increase. Dangote contends that such high rates stifle job creation and economic growth, stating emphatically that "Nobody can create jobs with an interest rate of 30%."
Dangote emphasized the need for government support of the manufacturing sector, highlighting its crucial role in addressing unemployment, poverty, and insecurity. He stressed the importance of affordable financing and reliable power supply for economic prosperity.
The MAN summit, attended by Vice President Kashim Shettima and other officials, also saw MAN President Otunba Francis Meshioye criticizing government policies. Meshioye revealed that over 70 manufacturers exited the sector between 2019 and 2022, underlining the urgent need for supportive measures.
Dangote's comments reflect growing concerns in Nigeria's business community about the challenging economic environment. His call for protecting existing businesses and reducing import dependence resonates with manufacturers seeking a more conducive operating climate.
