Chairman and Chief Executive of the ?angote Group, Aliko ?angote, has criticised the latest increment of interest rate to almost 30 percent by the Central Bank of Nigeria (CBN).
While addressing the audience during the opening session of a three-day summit organised by the Manufacturers Association of Nigeria (MAN) at the State House, Abuja, yesterday, ?angote said businesses could not cope with the current rate.
Recall that in May, following a two-day meeting, CBN’s Monetary Policy Committee (MPC) agreed to increase the Monetary Policy Rate (MPR) for the third straight time from 24.75% to 26. 25%.
“The CBN’s Monetary Policy Committee, (MPC), held its 295th meeting on the 20th and 21st of May 2024 to review recent economic and financial developments and assess risks to the outlook. CBN governor, Yemi Cardoso who is also the MPC chairman had said, “The committee’s decisions are as follows: 1. Raise the MPR by 150 basis points to 26. 25% from 24.75%”.
However, while speaking during the manufacturer’s summit yesterday, ?angote noted that “Nobody can create jobs with an interest rate of 30%. No growth will happen”.
He also called on the Government to protect existing businesses in the country, especially manufacturers, by providing an enabling environment for them to thrive. According to him, an import-dependence country is equivalent to poverty importation. “No Power, no prosperity. No affordable financing, no growth, no development”, he explained.
?angote said for the Government to address the challenges of unemployment, poverty and insecurity, the manufacturing sector must be empowered to function optimally.
The MAN also criticised Government policies and attitude, saying they were responsible for the low performance of the manufacturing sector in the country.
In his remarks, the MAN President, Otunba Francis Meshioye, said over seventy manufacturers have exited the sector between 2019 and 2022. He said it was time to take stock and rethink a way to support manufacturing businesses, to achieve the agenda of the current administration.
The event had in attendance, Vice President Kashim Shettima and other government officials.
