Aliko Dangote, President of the Dangote Group, has cautioned the Central Bank of Nigeria (CBN) that the recent increase in interest rates to almost 30% will have far-reaching consequences, including stifling growth and hindering job creation. Speaking at a three-day summit organized by the Manufacturers Association of Nigeria (MAN) in Abuja, Dangote expressed concerns about the high interest rate, which he believes will negatively impact the economy.
While acknowledging the CBN’s efforts to combat inflation through monetary policy, Dangote emphasized that the current interest rate is unsustainable for businesses and will lead to a decline in economic activity. He urged the CBN to reconsider its stance, warning that high interest rates will discourage investment and hinder job creation.
Dangote’s comments come as the CBN’s Monetary Policy Committee (MPC) raised interest rates from 24.75% to 26.25% in May, in an effort to curb inflation. The business magnate argued that while the intention behind the rate hike may be to tame inflation, the consequences will be detrimental to economic growth.
In addition to his concerns about interest rates, Dangote highlighted the significant contributions of his company, Dangote Cement, to the government’s coffers. He revealed that the company paid more taxes in 2023 than the entire banking industry, demonstrating the importance of supporting local industries.
Dangote also emphasized the need for government policies to be more supportive and protective of local industries, encouraging foreign investors to partner with local businesses to address challenges such as infrastructure deficits and market instabilities.
The billionaire entrepreneur reiterated his belief in Nigeria’s potential to develop a globally competitive manufacturing sector, stressing that the country has all the necessary resources to achieve this goal.
