President of the Dangote Group, Aliko Dangote, says the current interest rate of 26 per cent charged on bank loans is unfavourable for meaningful business growth
Indeed, he said the high interest rate had made it difficult to create jobs to grow the economy.
He spoke on Tuesday during the opening session of a three-day summit organised by the Manufacturers Association of Nigeria (MAN) at the Banquet Hall of the State House, Abuja.
Dangote said many businesses could not cope with the current rate.
The Central Bank of Nigeria’s Monetary Policy Committee (MPC) had increased the Monetary Policy Rate (MPR) for the third straight time from 24.75 per cent to 26. 25 per cent.
Dangote said, “Nobody can create jobs with an interest rate of 30%. 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, an import-dependent country is equivalent to poverty importation.
“No power, no prosperity, no affordable financing, no growth, no development,” he lamented.
Dangote said for the government to address the challenges of unemployment, poverty and insecurity, the manufacturing sector must be empowered to function optimally.
MAN also criticised government policies and attitude, saying they were responsible for the low performance of the manufacturing sector in the country.
The event had in attendance Vice President Kashim Shettima and other government officials. President of MAN, Otunba Francis Meshioye, said over 70 manufacturers had exited the sector between 2019 and 2022.
He said it was time to take stock and rethink a way to support manufacturing businesses to achieve the agenda of the current administration.
