High Interest Rates In Nigeria Amounts To Importation Of Poverty --- Dangote Laments
Aliko Dangote criticizes Nigeria's high 30% interest rate, saying it discourages job creation and investment. He compares it to lower rates in developed countries and urges the government to create policies that support businesses.
Business mogul, Aliko Dangote, has lamented over what he described as high interest rate which he said had worsened the poor economic situation in the country.
Dangote said that the 30 percent interest introduced by the Central Bank of Nigeria, CBN, had worsened the harsh economic situation which had chased out foreign investors from the country.
According to him, with the 30 percent nterest rate of 30%, it will be difficult to create or sustain jobs in the country.
He spoke at the summit of the Manufacturers Association of Nigeria, MAN, on Tuesday.
The present administration of President Bola Tinubu had been criticised by many Nigerians over impositions of multiple taxations on the citizens, noting that governance was not about impositions of taxes alone.
Dangote who emphasized the implications of the high interest rate spoke against the background of the fact that the CBN had been increasing the interest rate since 2015 in its bid to curb inflation, adding that the consequence of the increase rate spurge would stiffle economic growth.
The 30% interest rate in Nigeria is against rates in other countries such as in UK: 5.25%, US:5.5%, China: 3.45%, Germany: 4.5%, Japan:3.44%, South Korea: 4.85%, France:4.58% and Italy:5.71%.
Juxtaposing these interest rates to Nigeria’s, Dangote said, “Nobody can create jobs with an interest rate of 30%. No growth will happen.
“Import dependence is equivalent to importing poverty and exporting jobs. No power, no growth, no prosperity.”v
He also highlighted the disadvantages attached to total dependence on importation by a nation.
He further noted that foreign investors and manufacturers would be attracted only when they see that local investors are also doing well.
Dangote further noted that for this to be possible, the government must create policiest, that would support existing businesses, so that others will know that their investmxents will also be protected. Otherwise, no kind of incentive will bring foreigners to invest in the country.
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