Aliko Dangote, President and CEO of the Dangote Group, has expressed strong concerns over the Central Bank of Nigeria’s (CBN) decision to increase interest rates to almost 30%. Speaking at a summit organized by the Manufacturers Association of Nigeria (MAN) at the Presidential Villa in Abuja, Dangote argued that this move will hinder growth and job creation in the manufacturing industry.
He emphasized the need for policies that protect domestic industries, citing examples from Asia and the West. Dangote stressed that industrialization is key to economic growth and development, and urged the government to provide an enabling environment for manufacturers to thrive. According to him, “Nobody can create jobs with an interest rate of 30%. No growth will happen.”
Dangote noted that Nigeria has the potential to develop a globally competitive manufacturing sector, but this requires a rethink of the country’s industrialization policy. He called for policies that protect domestic industries and nurture them into homegrown champions that can create jobs and prosperity.
The CBN’s interest rate hike has been a subject of debate, with the World Bank warning that it may not effectively curb inflation and could pose a risk to economic growth. The Manufacturers Association of Nigeria (MAN) has also expressed concerns over the prevailing microeconomic environment, which is stifling the manufacturing sector.
Vice President Kashim Shettima called for prioritization of local content and promotion of made-in-Nigeria products, emphasizing the need to leverage the summit to develop an actionable roadmap for the sector’s growth. He regretted that the manufacturing sector, which has a crucial role to play in building a nation driven by production and abundance, had endured a series of setbacks over the past decades.
The summit aimed to interrogate the constraints facing the industrial sector and develop strategies to address them. The ultimate goal is to reposition the sector on the path of accelerated growth, enhance its competitiveness, and reap its multiplier effect on the economy and the wellbeing of citizens.
