Africa’s richest man, Aliko Dangote has called for the Nigerian government’s intervention to check the high interest rates, which he put at 30%.
Speaking at the Manufacturers Association of Nigeria (MAN) summit in Abuja, Dangote cautioned that the exorbitant rate would suffocate businesses and hinder job creation.
“The current interest rate is unsustainable for businesses,” Dangote emphasised. “With an interest rate of 30%, no one can create jobs. No growth will happen.”
He also called on the government to protect existing businesses in the country, especially manufacturers, by providing an enabling environment for them to thrive.
According to him, “We must look to leading countries in the West and the East who are actively protecting their domestic industries.”
Africa’s richest man further likened an import-dependence to poverty importation.
“Import dependence is equivalent to importing poverty and exporting jobs. No power, no growth, no prosperity. Similarly, no affordable financing, no growth, no prosperity. There is no industrialisation without protection Ignoring these facts, is what gives rise to insecurity, banditry, kidnapping and abject poverty,” he said.
Dangote’s criticism coincides with the decision of the CBN’s monetary policy committee to raise the benchmark interest rate to 29.9% in an effort to combat inflation. However, experts in the industry argue that this decision could potentially hinder economic growth and development.
The billionaire entrepreneur’s caution underscores the importance of a nuanced approach to monetary policy—one that carefully balances the objectives of price stability and fostering economic growth.
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