CBN’s interest rate policy killing businesses


The President and Chief Executive Officer of the Dangote Group, Aliko Dangote, has hit out at the increasing interest rate by the Centre Bank of Nigeria under the leadership of Olayemi Cardoso.

CBN since the inception of Cardoso’s time has continued to jerk up interest rate and currently on the brink of 30 percent.

Dangote slammed this upward movement on Tuesday at the flag-off of a three-day summit organised by the Manufacturers Association of Nigeria (MAN) held at the Banquet Hall of the Presidential Villa in Abuja.

The richest man in Africa in his presentation said the situation is hurting businesses, and is a disincentive to enterprise saying, “Nobody can create jobs with an interest rate of 30%. No growth will happen.”

He equally made a case for protectionism: “We must look to leading countries in the West and the East who are actively protecting their domestic industries.

“Import dependence is equivalent to importing poverty and exporting jobs. No power, no growth, no prosperity. Similarly, no affordable financing, no growth, no prosperity. There is no industrialisation without protection. Ignoring these facts is what gives rise to insecurity, banditry, kidnapping and abject poverty.”

Speaking further, “It is evident that the strength of a country’s manufacturing sector determines its capacity to compete in global trade, of which 70% is in manufactured goods.

“I am aware that the Bretton Woods Institutions have confused some of our economists about the word ‘protection’ to the extent that some of them think it is a blasphemy – a word that should not be uttered in good company. But how did China, Korea, India and several other Asian countries emerge as strong economies and a threat to the existing world economic order?

“We are often told that protecting your industries makes your country uncompetitive! This is pure fiction. It is quite the reverse. I say you cannot be competitive until you protect and support your own industry.

“Let me therefore conclude by reiterating that Nigeria has all it takes to develop and sustain a globally competitive manufacturing sector. But to do so, we must rethink our industrialisation policy. We must look to leading countries in the West and the East who are actively protecting their domestic industries.

“We must similarly enact policies to protect our domestic industries and nurture them into homegrown champions that will create the jobs and prosperity we desperately need.”

Sign up for our daily newsletter

Get the latest news delivered straight to your inbox every day. Stay informed with the Orijo Reporter's leading coverage of Nigerian and world news.


Please enter your comment!
Please enter your name here