- Aliko Dangote, President of Dangote Group, has expressed concerns about Nigeria’s high interest rates, which he believes are stifling economic growth and job creation.
- Dangote said the Central Bank of Nigeria’s (CBN) interest rate hike to almost 30% will make it impossible for businesses to create jobs and spur growth.
- He argued that while the CBN aims to curb inflation by raising rates, the move is actually “stifling growth” and no job creation will happen unless the interest rate comes down.
Newsypeople- Many folks have voiced worries over the government’s money choices. One critic is Peter Obi, who ran for president in 2023. He agrees with Africa’s richest man, Aliko Dangote, that high interest rates hurt businesses and jobs in Nigeria.
Dangote said a 30% interest rate prevents job growth, power access, affordable financing, and economic progress. Obi also opposed the February hike to 22.5% for the Monetary Policy Rate and 45% for the Cash Reserve Ratio.
He argued these increases made loan interest over 30%, making it very tough for manufacturers and small businesses to borrow and repay.
As proof, Peter Obi cited Manufacturing Association of Nigeria data showing in 2023, 767 companies closed, 335 struggled, and the sector’s capacity use fell to 56%.
Obi warned of wider economic harm, saying
“these harsh monetary and fiscal policies have slowed growth, driven out multinationals, stifled small businesses and discouraged foreign investment inflow.”
Obi urged taking quick action. He stressed the need to change this bad situation. It is causing more job losses and stopping companies from making things in our country.
It is also making it hard for us to move from just using things to making things.
Obi said,
“We need to go in a new direction. We should only make policies that can help our economy grow and create a new Nigeria.”
Obi agrees with Dangote’s worries. The government needs to fix the high interest rates. These high rates are hurting the economy and stopping new jobs from being created in Nigeria.
See the news below…
𝐎𝐛𝐢 𝐞𝐜𝐡𝐨𝐞𝐬 𝐃𝐚𝐧𝐠𝐨𝐭𝐞’𝐬 𝐜𝐨𝐧𝐜𝐞𝐫𝐧 𝐨𝐧 𝐡𝐢𝐠𝐡 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐫𝐚𝐭𝐞𝐬 https://t.co/BjuyNmYD1O
— Punch Newspapers (@MobilePunch) July 4, 2024
Also Read: Oyo State Celebrates Diversity, Declares Hijrah Holiday for Muslim Community
