President of the Dangote Group, Alhaji Aliko Dangote, has canvased a reduction in the 30 per cent interest rate in the country, noting that no economic growth can happen with the current rate.
He stated this in a keynote address to the Manufacturers Association of Nigeria (MAN), 2024 summit in Abuja, on Tuesday.
Dangote pointed out that the situation in developing countries, mostly in Africa, was peculiar and not the same as the cause of the inflation in major advanced economies in Europe and the United States which necessitated interest rate hikes.
According to him, inflation in North America and Europe could be traced to the cash transfer programme implemented by governments during the pandemic period in 2022, which saw about $18 trillion disbursed to individuals and businesses.
Africa’s richest man however pointe out that nothing of such significance happened across economies in Africa.
“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,” he stated.
Dangote further called for the protection of local industries, especially in manufacturing, across the country.
He said the only way to attract foreign direct investment is local investment and provided examples of how countries who voice the rhetoric of free trade actively enact policies to promote their local industries to become national treasures from the West to China and India.
