President of the Dangote Group, Alhaji Aliko Dangote, has urged the Central Bank of Nigeria (CBN) to reduce the country’s 30% interest rate, emphasizing that no economic growth can occur under the current rate.
Dangote made this call in a keynote address at the Manufacturers Association of Nigeria (MAN) 2024 summit in Abuja on Tuesday.
He highlighted that the economic situation in developing countries, particularly in Africa, is unique and differs from the causes of inflation in advanced economies like Europe and the United States, which have led to interest rate hikes.
Dangote explained that inflation in North America and Europe was partly due to the cash transfer programs implemented by governments during the pandemic in 2022, where approximately $18 trillion was disbursed to individuals and businesses.
In contrast, he pointed out that Africa did not experience any such significant economic intervention during COVID-19, aside from food palliatives.
“During COVID, we didn’t do anything at all. The only thing we did was food palliative and I’m talking about Africa in general. Right now, at 30%, there is no way anybody can create jobs because we are actually stifling growth. So interest rate can remain at 30% but no growth will happen unless that interest rate comes down,” Dangote stated.
He also called for the protection of local industries, particularly in manufacturing, across the country. Dangote stressed that attracting foreign direct investment starts with fostering local investment, citing examples of countries that promote their local industries to become national treasures, from the West to China and India.
