Aliko Dangote, President of the Dangote Group, has expressed concerns over Nigeria’s high interest rates, warning that the current rate of 30 percent is stifling economic growth and job creation. Speaking at a three-day summit organized by the Manufacturers Association of Nigeria (MAN) in Abuja, Dangote emphasized that such high interest rates are unsustainable for business expansion and employment generation.
“If the interest rate is 30 percent, there would not be any job creation because we are actually stifling growth,” Dangote stated. He further highlighted the broader economic implications, noting that an import-dependent economy equates to importing poverty. “No power, no prosperity. No affordable financing, no growth, no development,” he added.
This concern comes in the wake of the Central Bank of Nigeria’s (CBN) monetary policy committee (MPC) decision in May 2024 to raise interest rates from 24.75 percent to 26.25 percent. CBN Governor Olayemi Cardoso has defended the high rates, insisting they are necessary to curb inflation. “They will continue to do what has to be done to ensure that inflation comes down,” Cardoso stated in a recent interview.
However, Dangote argues that the elevated interest rates are counterproductive, particularly for the manufacturing sector, which he believes is key to addressing unemployment, poverty, and insecurity in Nigeria. “Right now, at 30 percent, there is no way anybody can create jobs. So, interest rates can remain at 30 percent but then no growth will happen unless that interest rate goes down,” he said.
Francis Meshioye, President of MAN, echoed Dangote’s concerns, revealing that over 70 manufacturers have exited the sector between 2019 and 2022 due to unfavorable conditions. He called for a reassessment of policies to support manufacturing businesses and achieve the agenda of the current administration.
The summit, which saw attendance from Vice President Kashim Shettima and other government officials, also featured criticism from MAN regarding government policies and attitudes, which they say have contributed to the manufacturing sector’s poor performance.
