Interest Rate: If Dangote Can Complain, Then Imagine Small Businesses – Obi

Peter Obi, Labour Party’s presidential candidate, has raised concerns over the federal government’s monetary policies, which he noted have dire and negative impacts that seem to befall small businesses.

Recall that Aliko Dangote had recently raised concerns over the 30% increase in the interest rate in the country.

Obi noted that he had spoken against the decision of the Monetary Policy Committee in February to peg the Monetary Policy Rate (MPR) at 22.5% and the Cash Reserve Ratio at 45%.

He said the upticks have worsened the economy and closed the space for manufacturers and MSMEs to borrow and repay loans.

With interest on loans exceeding 30%, the impediments to the nation’s economic growth have become very glaring.

“If Dangote, the richest person in Africa and a frontline industrialist, can complain, then you can imagine the negative implications these policies are having on MSMEs who are the engine of economic growth,” Obi said.

”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%,” he added.

Obi urged the reversal of these policies with immediate effect, cautioning that if permitted to stay, the policies would lead to more job losses and drive away production to quicken Nigeria’s aspiration to become a production-based economy as much as possible.

Obi stressed the need for immediate action to reverse the current trend, which has created a harsh economic environment and negatively impacted the nation’s economic growth.

Read also: Dangote Decries CBN 30% Interest Rate, Says It Stifles Business Growth And Job Creation.

Amid Inflation, CBN Increases Interest Rate To 26.25% For The Third Time In 2024

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