Dangote Rejects Govt Interest Rates Urges Nigerian Government to Reconsider High Interest Rates to Spur Economic Growth

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Aliko Dangote, Chairman of the Dangote Group, has raised serious concerns over the Central Bank of Nigeria's (CBN) recent decision to increase the interest rate to nearly 30%. Speaking at the Manufacturers Association of Nigeria (MAN) summit held at the Banquet Hall of the State House in Abuja, Dangote stressed the detrimental impact of such high rates on economic growth and job creation.


In his address, Dangote articulated that a 30% interest rate is untenable for businesses seeking to expand and create jobs. He stated, "Nobody can create jobs with an interest rate of 30%. No growth will happen." This sentiment echoes the broader concerns within the business community about the feasibility of sustaining operations and driving growth under such financial constraints.


Dangote urged the Nigerian government to support established companies by re-evaluating its monetary policies. He emphasized the importance of affordable financing as a cornerstone for industrialization and economic prosperity. “No affordable financing, no growth, no prosperity. There is no industrialization without protection," Dangote remarked, highlighting that ignoring these fundamentals could lead to increased insecurity and poverty.


Drawing parallels with leading economies, Dangote pointed out that countries in both the West and the East actively protect their domestic industries to foster growth. He stated, “We must look to leading countries in the West and the East who are actively protecting their domestic industries.” This protection, according to Dangote, is crucial for Nigeria to reduce its import dependence, which he equated to “importing poverty and exporting jobs.”


Dangote also linked the lack of industrial protection to broader societal issues such as insecurity and unemployment. “Import dependence is equivalent to importing poverty and exporting jobs. No power, no growth, no prosperity,” he asserted. He called for strategic measures to ensure that the local industries are safeguarded to promote sustainable development and reduce socio-economic challenges.


Aliko Dangote's plea to the Nigerian government highlights a critical intersection of economic policy and national development. His call for lower interest rates and better protection for domestic industries underscores the need for a balanced approach to economic management. As Nigeria navigates its economic future, the insights from one of its leading industrialists may serve as a valuable guide for fostering a more robust and inclusive growth trajectory.



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