Business mogul, Aliko Dangote has highlighted a major impediment to job creation and speedy economic growth in the country.
He said the high interest rate can discourage investment and hamper economic growth.
Dangote, President of the Dangote Industries Limited, warned that the 26.25% interest rate fixed by the Central Bank of Nigeria (CBN) will incapacitate the manufacturing sector and make it more difficult for the economy to grow.
The eminent businessman delivered a keynote address at the opening of a three-day
National Manufacturing Policy Summit organised by the Manufacturers Association of Nigeria (MAN) at the State House Conference Centre, Abuja,
At the conference, Vice President Kashim Shettima, who chairs the National Economic Council (NEC), reiterated the Federal Government’s determination to team up with MAN to fashion out an actionable roadmap and policy framework for the sector.
In May, the CBN raise interest rate from 24.75 per cent to 26. 25 per cent.
Dangote said businesses cannot not cope with the current rate, adding: “Nobody can create jobs with an interest rate of 30%. No growth will happen.”
He also decried the penchant for importation of goods and services, saying it is a harbinger of poverty.
Dangote said: “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 industrialization without protection. Ignoring these facts is what gives rise to insecurity, banditry, kidnapping and abject poverty.”
He urged government to rethink its industrialization policy and provide necessary support and protection to the manufacturing sector, emphasizing that industrialization is key to sustainable economic growth and development.
Dangote highlighted the importance of manufacturing in driving economic diversification, job creation, and foreign exchange generation.
He said the manufacturing sector has declined over the years, resulting in significant import dependence and poverty.
Dangote cited examples of how Asian countries achieved industrialization by protecting and supporting local companies, attracting foreign investment, and creating competitive industries.
He maintained that government’s protection and support are crucial for the long-term survival and growth of industries, citing the success of Nigeria’s cement industry as an example.
Dangote stressed: “There are, no doubt, many causes for failure of our manufacturing sector to meet the expectations of our people. Let me use a personal example to illustrate.
“It is now an established fact that industrialisation is an inescapable route to sustainable and inclusive economic growth and human development.
“I believe we all know the critical role that manufacturing plays in the modern economy, especially its impact on other sectors through various linkages; job creation; economic diversification & FX generation; government revenues; technology transfer/adaptation and Innovation.
“Manufacturing remains a key driver in a nation’s quest for economic development and self-sufficiency. It is easy to determine the level of economic development, growth, and wellbeing of a nation by observing its manufacturing sector.
“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, according to available statistics.
“Countries that have industrilised and have a robust manufacturing sector and are able to export manufactured goods are generally able to grow their economies through global trade.”
Credit: thenationonlineng.net
