Nigeria Must Listen to Dangote on Interest Rate
The business icon has spoken: "Right now, at 30%, there is no way anybody can create jobs because we are actually stifling growth. So interest rate can remain at 30% but no growth will happen unless that interest rate comes down," Aliko Dangote.
That has been my position: even though we want to fight inflation, Nigeria must bring interest rates lower to make it possible for manufacturers to breathe, since if they do not breathe, we may not have the SUPPLY (yes, goods and services) we need to reduce inflation (ceteris paribus at constant demand). The World Bank has also come to the same conclusion.
Good People, I read quarterly reports of dozens of companies from Nigeria, there is no way any company can take a loan at 30% interest rate, and still GROW. It is impossible in this economy when you still have to be your own water board, electricity board, police, etc as there is really nothing the nation provides to companies these days!
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Now that Dangote has gone public, I do hope someone will review these policies.