Dangote urges CBN to halt interest rate hikes over threats to economic growth, job creation

Business a.m.

Aliko Dangote, president of Dangote Group,has identified the country’s high interest rates as an obstacle to economic growth, warning that a closer increase to 30 percent would stifle job creation.

With the CBN recently raising interest rates  from 24.75 percent to 26.25 percent, Dangote expressed concern that the increase will severely constrain the ability of businesses to invest and expand, ultimately hindering Nigeria’s overall economic development.

Addressing a three-day summit organised by the Manufacturers Association of Nigeria (MAN) in Abuja, Dangote expressed his awareness of the CBN’s motivation to combat inflation by raising interest rates, but warned that the current rate of almost 30 percent is simply untenable.

Dangote highlighted the fact that this high interest rate will significantly hinder the ability of businesses to create jobs, stating that “at almost 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,” the business tycoon added..

Dangote revealed that his company, Dangote Cement, contributed more taxes to the government’s coffers in 2023 than the entire banking sector combined, highlighting the magnitude of Dangote Cement’s contribution to the Nigerian economy.

Dangote further refuted the notion that protecting domestic industries would result in monopolies, stating that the presence of thriving local companies often encourages foreign investors to enter the market. He also pointed out that it is widely recognised that foreign investors tend to evaluate the success of local investors before making their own investments.

“I am convinced that when government policy becomes more supportive and protective, investors will be more willing to collaborate and partner with the government in resolving other challenges such as infrastructure deficits, market instabilities and macro-economic issues such as inflation and foreign exchange volatilities,” he said.

The industrialist insisted that Nigeria possesses the necessary elements to foster a competitive and successful manufacturing sector on the global stage.

He therefore called for a comprehensive review of the country’s industrialisation policy, urging policymakers to draw inspiration from leading countries in the West and East that have successfully achieved their objectives by protecting their domestic industries.