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Alhaji Aliko Dangote, President of Dangote Industries Ltd, has criticized the Central Bank of Nigeria's (CBN) 30% interest rate, warning that such a policy could stifle business growth and job creation in the country.
In his keynote speech at the opening of the three-day Nigeria Manufacturers Summit, themed "Rethinking Manufacturing in Nigeria," Dangote also offered solutions to sustain existing investments and attract new ones.
The summit, held at the Banquet Hall, State House, Abuja, was inaugurated by Vice President Kashim Shettima.
Dangote emphasized that to prevent investors from leaving and to attract new ones, the Federal Government must implement deliberate industrial policies that assure investors of support and protection. He stated that these policies are the greatest incentives for all existing investors and manufacturers, both local and foreign.
He noted that foreign investors would be attracted only when they see local investors thriving. According to him, attracting foreign investment is not about government officials seeking it abroad but about creating a supportive environment at home.
"I recommend that government policies should support and protect existing industries so that others will know their investments will also be protected. Are there any better incentives than that? I don't think so. An industrial policy that assures investors of support and protection is the greatest incentive for all investors, both local and foreign," he said.
Dangote also highlighted the importance of stable and affordable power and accessible financing to sustain and attract investors and manufacturers. He argued that an import-dependent economy equates to importing poverty and exporting jobs.
He further stated that supportive and protective government policies would encourage investors to collaborate and partner with the government, helping to resolve challenges such as infrastructure deficits, market instability, inflation, and foreign exchange volatility. Ignoring these issues, he warned, leads to insecurity, banditry, kidnappings, and abject poverty.
Regarding bank loans to investors, Dangote criticized the current 30% interest rate, stating it stifles growth and job creation. However, he expressed optimism that Nigeria has the potential to develop and sustain a globally competitive manufacturing sector.
Dangote also emphasized that when government policies become more supportive and protective, investors would be more willing to collaborate and partner with the government. This collaboration can help address other challenges such as infrastructure deficits, market instability, inflation, and foreign exchange volatility. Ignoring these issues, he warned, leads to insecurity, banditry, kidnappings, and abject poverty.
On the topic of bank loans to investors, Dangote criticized the current 30% interest rate, stating it stifles growth and makes job creation nearly impossible. However, he expressed optimism that Nigeria has the potential to develop and sustain a globally competitive manufacturing sector.
“To achieve this, we must rethink our industrialization policy. We should look to leading countries in the West and East that protect their domestic industries. Similarly, we must introduce policies to protect our domestic industries and nurture them into home champions that will create the jobs and prosperity we desperately need. The time to rethink our industrial policy is now,” Dangote said.
He reiterated that manufacturing is key to the nation’s economic development and self-sufficiency, adding that the strength of a country’s manufacturing sector determines its capacity to compete in global trade.
Former Minister of Industry, Trade, and Investment, Olusegun Aganga, also spoke at the event, appealing to President Bola Tinubu to declare manufacturing a national priority sector.
