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Dangote Faults CBN’s 26% Interest Rate

He urged the government to safeguard existing businesses, particularly manufacturers, by creating a conducive environment for their growth.

Dangote Criticizes CBN’s Interest Rate Hike

Chairman and Chief Executive Officer of Dangote Group, Aliko Dangote, has criticized the Central Bank of Nigeria’s (CBN) recent interest rate hike to nearly 30%. Speaking at the opening session of a three-day summit organized by the Manufacturers Association of Nigeria (MAN) at the Banquet Hall of the State House in Abuja on Tuesday, Dangote emphasized that businesses cannot sustain operations under the current rates.

In May, after a two-day meeting, the CBN’s Monetary Policy Committee (MPC) decided to raise the Monetary Policy Rate (MPR) from 24.75% to 26.25%.

“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% from 24.75%,” announced CBN Governor, Yemi Cardoso.

At the summit, Dangote remarked, “Nobody can create jobs with an interest rate of (about) 30%. No growth will happen.” He also urged the government to protect existing businesses, particularly manufacturers, by creating a conducive environment for them to thrive. According to him, an import-dependent country equates to importing poverty.

“No power, no prosperity. No affordable financing, no growth, no development,” Dangote explained. He stressed that to tackle unemployment, poverty, and insecurity, the manufacturing sector must be empowered to function optimally.

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MAN also criticized government policies and attitudes, attributing them to the low performance of the manufacturing sector in the country.

The event was attended by Vice President Kashim Shettima and other government officials. In his remarks, MAN President Francis Meshioye noted that over 70 manufacturers had exited the sector between 2019 and 2022. He called for a reassessment and support for manufacturing businesses to achieve the current administration’s agenda.