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

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

508
Peter Obi, Labour Party's presidential candidate has raised concerns over the monetary policies of the federal government, which have dire and negative impacts that seem to befall small businesses.

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

About The Author

Related Articles

Rose Gidado, Dual Regulator and Bill Gates-Funded TELA Maize Advocate, Defends GMO Safety With ‘We Won’t Poison Our Own People’
AgricultureNews

Rose Gidado, Nigeria’s GMO Regulator and TELA Maize Advocate, Defends Safety – ‘We Won’t Poison Our Own People’

Rose Gidado, Director at the Department of Agricultural Biotechnology of the National...

Nigerian Passport
NewsTravel

Nigeria Immigration Triples Passport Fees To N100,000, N200,000 In Less Than 2 Years

The Nigeria Immigration Service (NIS) has announced another upward review of passport...

Air Burkina fleet
NewsTravel

Burkina Faso To Launch Direct Flights To Russia

Burkina Faso and Russia are considering establishing direct air links as part...

Niger
NewsTravel

Niger Imposes Visa Restrictions On 5 European Nations In Retaliation For Travel Difficulties

Niger has announced new restrictions on where citizens of five European countries...