Aliko Dangote, president of the Dangote Group, has raised concerns that the Central Bank of Nigeria’s (CBN) decision to increase interest rates to nearly 30 percent will stifle economic growth.

Speaking on Tuesday at a three-day summit organized by the Manufacturers Association of Nigeria (MAN) in Abuja, Dangote highlighted the country’s struggle with “a very high” interest rate. In May, the CBN’s monetary policy committee (MPC) raised the interest rate from 24.75 percent to 26.25 percent.

Dangote acknowledged the CBN’s intention to curb inflation through higher interest rates but expressed his concerns about its adverse effects. “Right now, at 30 percent, there is no way anybody can create jobs. If the interest rate is 30 percent, there would not be any job creation because we are actually stifling growth,” he stated. “So, interest rates can remain at 30 percent but then no growth will happen unless that interest rate goes down.”

The business magnate revealed that in 2023, Dangote Cement paid “more taxes” to the government than the entire banking industry combined. He also refuted the notion that protecting industries leads to monopoly, arguing that foreign investors are more likely to invest when they see local investors thriving.

“I am convinced that when government policy becomes more supportive and protective, investors will be more willing to collaborate and partner with the government in resolving other challenges such as infrastructure deficits, market instabilities, and macro-economic issues such as inflation and foreign exchange volatilities,” Dangote said.

He emphasized that Nigeria has the potential to develop and sustain a globally competitive manufacturing sector and called for a re-evaluation of the country’s industrialization policy by learning from leading western and eastern countries that actively protect their domestic industries.