Former Anambra State Governor and 2023 Labour Party presidential candidate, Peter Obi, has echoed the sentiments expressed by Nigerian billionaire and business mogul, Alhaji Aliko Dangote, regarding the detrimental effects of high interest rates on job creation and economic growth in Nigeria.
In a recent social media post, Obi highlighted the urgent need to address the current monetary policy landscape that is hindering the prosperity of Micro, Small, and Medium Enterprises (MSMEs) in the country.
Dangote’s public outcry against the persistently high interest rate of 30% resonated with Obi, who emphasized that such financial conditions are counterproductive to fostering a conducive environment for job creation and sustainable economic development.
Drawing parallels between his own previous warnings in February and Dangote’s recent remarks, Obi expressed the urgent need for policy reforms to stimulate growth and investment in the Nigerian economy.
In his statement shared on social media, Peter Obi emphasized the critical role that MSMEs play as the engine of economic growth, expressing deep concern over the challenges they face in accessing affordable credit due to soaring interest rates.
He criticized the decision of the Monetary Policy Committee to increase the Monetary Policy Rate (MPR) to 22.5% and the Cash Reserve Ratio (CRR) to 45%, warning that such measures would only exacerbate the economic hardship faced by manufacturers and small businesses.
Obi reiterated his stance that high borrowing costs exceeding 30% would pose significant obstacles for MSMEs seeking financial assistance to expand their operations, innovate, and create employment opportunities.
He echoed Dangote’s assertion that without a conducive financial environment, job creation would be severely hampered, resulting in stagnant economic growth and diminished prospects for prosperity.
As both a seasoned politician and a proponent of economic reforms, Peter Obi’s alignment with Aliko Dangote’s concerns reiterated the urgent need for policymakers to address the challenges faced by businesses and entrepreneurs in Nigeria.
The collective call for a more favorable monetary policy regime highlights the shared commitment to fostering a business-friendly environment that supports job creation, innovation, and sustainable economic progress in the country.
Here is what the former governor of Anambra state wrote on his page;
“Africa’s Foremost Entrepreneur and Respected Nigerian Businessman, Aliko Dangote’s recent outcry against the current interest rate of 30%, underscores my earlier cry in February on the negative effects of the monetary policy of the present Federal Government. According to Dangote, no jobs will be created with such a high interest rate because there will be no growth in the economy. This has been my consistent position over time. In February this year, I argued against the decision of the Monetary Policy Committee on MPR to 22.5% and CRR to 45% increases which, in my opinion, would further worsen the economic situation, as the increases would push interest rates on loans to above 30%, which would be very difficult for manufacturers and MSMES to borrow and repay”.
