Aliko Dangote, the Chairman of the Dangote Group, has expressed his strong objection to the Central Bank of Nigeria’s (CBN) recent decision to raise interest rates to nearly 30%.
News About Nigeria reports that the billionaire shared his concerns about the impact of this decision on the economy at a conference organised by the Manufacturers Association of Nigeria (MAN) in Abuja on Tuesday.
Dangote argued that the higher interest rate would hinder economic growth and potentially create obstacles to job creation.
He stressed that the new rate would not facilitate growth.
“Nobody can create jobs with an interest rate of 30%. No growth will happen,” he said.
“We must look to leading countries in the West and the East that are actively protecting their domestic industries.
“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.”
In May, following a two-day meeting, CBN’s Monetary Policy Committee (MPC) agreed to increase the Monetary Policy Rate (MPR) from 24.75 percent to 26.25 percent.
“The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 295th meeting on the 20th and 21st of May 2024 to review recent economic and financial developments and assess risks to the outlook.
“Decisions of the MPC. The committee’s decisions are as follows: 1. Raise the MPR by 150 basis points to 26.25 percent from 24.75 percent,” said CBN Governor Yemi Cardoso
