"Real Growth Has Dropped": Peter Obi Reacts as Dangote Cries Out Over High Interest Rate in Nigeria
- Peter Obi has lamented that the alleged harsh economic policies of authorities in Nigeria have negative effects on the monetary and fiscal sides
- Obi said the policies have continued to slow down Nigeria's economic growth, drive multinationals out of the country, stifle small businesses, and discourage the inflow of foreign direct investment
- The presidential hopeful stated that the country needs to "reverse course and only initiate policies that can lead to growth and the birth of a new Nigeria”
Legit.ng journalist Ridwan Adeola Yusuf has over 9 years of experience covering public journalism and governance.
FCT, Abuja - Peter Obi, the presidential candidate of the Labour Party (LP) in the 2023 election, has said Aliko Dangote's recent outcry against the current interest rate of 30% underscores his earlier stance monetary policy of the Bola Tinubu administration.
Dangote had criticised Nigeria’s economic drivers' decision to raise interest rates to nearly 30%.
Source: Twitter
The foremost entrepreneur also advocated for policies that safeguard domestic industries and cultivate them into indigenous champions capable of generating jobs in the face of current global economic woes.
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
In a statement he personally signed on Thursday, July 4, the presidential hopeful recalled that earlier in 2024, he spoke against the decision of the monetary policy committee to peg the monetary policy rate (MPR) at 22.5% and up the cash reserve ratio (CRR) to 45%.
Obi said he had warned that this would further worsen the economic situation in Nigeria.
According to the former Anambra state governor, the policy tools by the Central Bank of Nigeria (CBN) would push interest rates on loans to above 30%, “which would be very difficult for manufacturers and MSMES to borrow and repay”.
“If Dangote, the richest person in Africa, and foremost industrialist, can complain, then imagine the negative impacts of these policies on MSMEs who are the engine of economic growth.
“To further understand the harsh economic environment that this monetary policy had exacerbated, the recent report from the Manufacturing Association of Nigeria (MAN) stated.
“In 2023, 767 companies were shut down and 335 became distressed.
"The capacity utilisation in the sector has declined to 56%; the interest rate is effectively above 30%; foreign exchange to import raw materials and production machine inventory of unsold finished products has increased to N350 billion and the real growth has dropped to 2.4%.”
Obi visits Dangote refinery
Earlier, Legit.ng reported that Obi explained why he attended the commissioning of Dangote Refinery in the Lekki free trade cone area of Lagos state.
Obi said he attended the event because he has consistently called for greater private-sector participation in Nigeria’s economy.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
PAY ATTENTION: Donate to Legit Charity on Patreon. Your support matters!
Source: Legit.ng
