Dangote questions 30% interest rate set by CBN.
The most recent interest rate hike by the Central Bank of Nigeria (CBN) to nearly 30% has been met with criticism from Aliko Dangote, Chairman and Chief Executive of the Dangote Group.
At the banquet hall of the state house in Abuja, on Tuesday, Dangote told the audience that businesses could not handle the present rate while addressing them during the opening session of a three-day summit hosted by the Manufacturers Association of Nigeria (MAN).
A two-day meeting in May concluded with the Monetary Policy Committee (MPC) of the CBN agreeing to raise the Monetary Policy Rate (MPR) from 24.75% to 26.25%, marking the third consecutive increase.
In order to discuss current economic and financial trends as well as potential threats to the future, the 295th meeting of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) was conducted on May 20th and 21st, 2024.
Decisions made by the MPC…. Here are the committee’s rulings: 1. CBN Governor Yemi Cardoso, who is also the MPC chairman, recommended that the MPR should be raised from 24.75% to 26.25%, an increase of 150 basis points.
Nevertheless, Dangote made the observation that “nobody can create jobs with an interest rate of 30%” during his Tuesday speech at the manufacturer’s summit. There will be no development.
Also, he urged the government to foster an environment where manufacturers and other established firms can prosper.
An import-dependent nation is the same as importing poverty, in his view.
Power is essential for prosperity. “No growth, no development, no affordable financing,” he explained.
The government must empower the manufacturing sector to work optimally, according to Dangote, if it is to address the concerns of unemployment, poverty, and insecurity.
The MAN also held the government to account for the country’s manufacturing sector’s poor performance, citing policies and attitudes as the culprits.
Notable government officials, including Vice President Kashim Shettima, were present at the occasion.
Over seventy manufacturers left the industry between 2019 and 2022, according to Otunba Francis Meshioye, President of MAN.
In order to accomplish the goals of the present government, he added, it was necessary to assess the situation and consider new ways to assist industrial companies.