The chairman and president of the Dangote Group, Aliko Dangote has raised concerns about the Central Bank of Nigeria’s (CBN) high interest rate saying it can discourage investment and impede economic growth.
He warned that the 26.25% interest rate fixed by CBN will incapacitate the manufacturing sector and make it more difficult for the economy to grow.
This he posited in a keynote address at the opening of a three-day National Manufacturing Policy Summit organized by the Manufacturers Association of Nigeria (MAN) at the State House Conference Centre, Abuja.
Dangote said businesses cannot cope with the current rate, adding: “Nobody can create jobs with an interest rate of 30%. No growth will happen.” He also decried the penchant for importation of goods and services, saying it is a harbinger of poverty. Dangote said: “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 industrialization without protection. Ignoring these facts is what gives rise to insecurity, banditry, kidnapping and abject poverty.”
He enjoined the federal government to rethink its industrialization policy and provide necessary support and protection to the manufacturing sector, emphasizing that industrialization is key to sustainable economic growth and development—highlighting the importance of manufacturing in driving economic diversification, job creation, and foreign exchange generation.
Dangote said the manufacturing sector has declined over the years, resulting in significant import dependence and poverty.
