Aliko Dangote, Chairman of Dangote Cement, has stated that Nigeria’s high interest rates are hindering economic growth and job creation. Speaking at a summit in Abuja, Dangote noted that the Central Bank of Nigeria’s (CBN) interest rate hikes are stifling growth and urged the government to support existing businesses, particularly manufacturers, by creating a conducive environment for their success. He emphasized that Nigeria needs to rethink its industrialization policy and follow the example of leading countries that safeguard their domestic industries. Dangote also highlighted the importance of empowering the manufacturing sector to tackle unemployment, poverty, and insecurity.
Since the start of the year, the CBN has increased interest rates by 750 basis points across three consecutive Monetary Policy Committee (MPC) meetings, rising from 18.75% to 26.25%. While the central bank aims to curb inflation, experts argue that high interest rates harm the real economy by increasing the cost of capital. Dangote’s call for a more supportive environment for businesses resonates with concerns about the impact of high interest rates on economic growth and job creation in Nigeria.
