Business

See Reasons Dangote Criticizes CBN’s Interest Rate Hike

Published by admin on July 3rd, 2024.

See Reasons Dangote Criticizes CBN’s Interest Rate Hike

Aliko Dangote, Chairman and CEO of Dangote Group, has voiced his disapproval of the Central Bank of Nigeria’s (CBN) recent decision to increase interest rates to nearly 30%.

Speaking at the Manufacturers Association of Nigeria (MAN) summit held at the Banquet Hall of the State House in Abuja, Dangote emphasized that the current rates are unsustainable for businesses.

In May, following a two-day deliberation, the CBN’s Monetary Policy Committee (MPC) resolved to raise the Monetary Policy Rate (MPR) from 24.75% to 26.25%.

“The MPC of the CBN convened its 295th meeting on May 20 and 21, 2024, to evaluate recent economic and financial trends and identify risks to the outlook. The committee decided to increase the MPR by 150 basis points, from 24.75% to 26.25%,” announced CBN Governor Yemi Cardoso.

During the summit, Dangote argued that an interest rate nearing 30% hinders job creation and economic growth. He urged the government to support existing businesses, particularly manufacturers, by fostering a conducive environment for their operations.

Dangote highlighted the perils of an import-dependent economy, equating it to importing poverty. He stated, “Without power, there is no prosperity. Without affordable financing, there is no growth or development.”

He stressed that to tackle unemployment, poverty, and insecurity, the government must empower the manufacturing sector to operate effectively.

The MAN summit also featured critiques of government policies and attitudes, which were blamed for the manufacturing sector’s poor performance. MAN President Francis Meshioye noted that over 70 manufacturers exited the sector between 2019 and 2022. He called for a reassessment and new strategies to support manufacturing businesses in line with the current administration’s agenda.

The event was attended by Vice President Kashim Shettima and other government officials.