Peter Obi Joins Dangote in Critique of High Interest Rates

By Milcah Tanimu

Peter Obi, the 2023 Labour Party presidential candidate, has aligned with Aliko Dangote’s concerns over Nigeria’s high interest rates, echoing the billionaire’s recent remarks.

Obi’s statement, issued on Thursday, underscores the detrimental impact of the current government’s monetary policies on economic growth and job creation, as highlighted by Dangote’s criticism of the prevailing 30% interest rate.

“Dangote’s recent outcry against the current interest rate of 30% underscores my earlier concern in February about the negative effects of the present Federal Government’s monetary policy,” Obi stated via X.

Aliko Dangote, Chairman and CEO of the Dangote Group, had earlier voiced his apprehension during the National Manufacturing Policy Summit, emphasizing that such high interest rates hinder job creation and economic growth.

“Nobody can create jobs with an interest rate of 30 per cent. No growth will happen. No Power, no prosperity. No affordable financing, no growth, no development,” Dangote asserted.

Obi elaborated on the implications of these high rates, citing data from the Manufacturing Association of Nigeria (MAN) that showed significant closures and distress in the sector due to inaccessible financing.

“In 2023, 767 companies were shut down and 335 became distressed. The capacity utilization in the sector has declined to 56%,” Obi highlighted, emphasizing that such high borrowing costs exceed 30% effectively.

Expressing concern over the broader economic repercussions, Obi called for a reversal of current policies to stimulate economic growth, attract foreign investment, and support small businesses.

“We need to reverse this trend to prevent further job losses, stimulate production, and transition Nigeria towards a productive economy,” Obi urged, advocating for policies that foster growth and development.

As stakeholders continue to debate the impact of monetary policies on Nigeria’s economic landscape, Obi and Dangote’s voices join a chorus calling for urgent reform to bolster the country’s economic prospects.