High interest rate will suffocate businesses, hinder job creation—Dangote

Aliko Dangote, Chairman and CEO of the Dangote Group, on Tuesday, vehemently criticized the Central Bank of Nigeria’s (CBN) recent decision to raise interest rates to nearly 30%.

Speaking at the Manufacturers Association of Nigeria (MAN) summit in Abuja, Dangote cautioned that the exorbitant rate would suffocate businesses and hinder job creation.

“The current interest rate is unsustainable for businesses,” Dangote emphasized. “With an interest rate of 30%, no one can create jobs. No growth will happen.” His remarks underscore the concerns of Nigeria’s manufacturing sector, which is already grappling with numerous challenges.

READ ALSO: Dangote assures public after Fire incident at Lagos refinery

Dangote’s critique comes as the CBN’s monetary policy committee voted to raise the benchmark interest rate to 29.9% in a bid to curb inflation. However, industry experts argue that this move may have adverse consequences for economic growth and development.

The billionaire entrepreneur’s warning highlights the need for a balanced approach to monetary policy, one that considers the needs of both price stability and economic growth.

As Nigeria’s economy continues to navigate the challenges of inflation, currency fluctuations, and stagnant growth, the debate over the CBN’s interest rate hike is likely to intensify.