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Dangote opposition to 30 per cent interest rate proves me right – Peter Obi
Former Labour Party (LP) presidential candidate, Mr. Peter Obi, has stated that Aliko Dangote’s recent criticism of the current 30 percent interest rate highlights his previous concerns about the detrimental effects of the Federal Government’s monetary policy.
Obi had opposed the Monetary Policy Committee’s decision to raise the Monetary Policy Rate (MPR) and the Cash Reserve Ratio (CRR) to 22.5% and 45%, respectively. He argued that these increases would exacerbate the economic situation, pushing loan interest rates above 30%, thus making it very difficult for manufacturers and MSMEs to borrow and repay.
In a statement on Thursday via his X handle, Obi noted that Aliko Dangote, Africa’s leading entrepreneur and respected Nigerian businessman, emphasized that no jobs would be created with such a high interest rate, aligning with Obi’s longstanding position.
The former Anambra State governor stressed the urgent need to reverse this detrimental trend, which is causing further job losses, discouraging production, and hindering Nigeria’s shift from consumption to production.
Obi said: “Aliko Dangote’s recent outcry against the 30% interest rate underscores my earlier warnings about the negative impacts of the current monetary policy. Dangote’s assertion that such high interest rates stifle job creation and economic growth echoes my consistent stance.
“In February, I opposed the Monetary Policy Committee’s decision to increase the MPR to 22.5% and the CRR to 45%, as these hikes would push loan interest rates above 30%, making it very challenging for manufacturers and MSMEs to secure and repay loans.
“If Africa’s richest person and foremost industrialist is raising concerns, imagine the adverse effects on MSMEs, which are the engine of economic growth.
“A recent report from the Manufacturing Association of Nigeria (MAN) indicated that in 2023, 767 companies shut down and 335 became distressed. Capacity utilization in the sector declined to 56%; interest rates exceeded 30%; foreign exchange for raw materials and production machines was scarce; unsold finished products inventory rose to N350 billion; and real growth rate dropped to 2.4%.
“These harsh monetary and fiscal policies have slowed our economic growth, driven multinationals out of the country, stifled small businesses, and discouraged foreign direct investment.
“We must urgently reverse this harmful trend that is causing job losses, discouraging production, and hindering our transition from consumption to production. We need policies that promote growth and the emergence of a new Nigeria. A New Nigeria is Possible.”
Dangote Refinery has announced that it will need to export 95-97 percent of its Premium Motor Spirit (petrol) due to low interest from Nigerian marketers. The refinery, which processes 650,000 barrels per day, revealed that only 3 to 5 percent of petrol marketers are purchasing its fuel.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, shared these details during an X Space session hosted by Nairametrics on Wednesday. He highlighted the challenges facing both the Dangote Refinery and Nigeria’s oil and gas sector.
Edwin explained, “I’m selling 2 to 3 percent to small traders who are willing to buy, while the remaining 95 to 97 percent has to be exported,” referring to the local sales of the refinery’s products.
This situation arises as the NNPCL’s deadline for adjusting the Dangote Refinery’s fuel distribution approaches without a clear plan in sight. It is worth noting that while Aliko Dangote, President of Dangote Group, has announced the refinery’s initial petrol rollout, its distribution to marketers is contingent upon NNPCL’s decisions.
The final sixteen teams for the 2024 FIFA U-20 Women’s World Cup in Colombia have been determined following the conclusion of the group stage.
In recent matches, Ghana triumphed over New Zealand with a score of 3-1, and Japan secured a 2-0 victory against Austria.
As a result, Japan has advanced to the Round of 16, joining the other 15 teams in this knockout stage.
The Round of 16 matches are scheduled for Wednesday, Thursday, and Friday.
The full lineup for the Round of 16 is as follows:
- Spain vs Canada
- Brazil vs Cameroon
- Colombia vs South Korea
- Mexico vs USA
- North Korea vs Austria
- Germany vs Argentina
- Netherlands vs France
- Japan vs Nigeria
The Nigerian Army has refuted claims of widespread resignations among its soldiers due to issues like corruption and low morale.
In a statement, Major General Onyema Nwachukwu, Director of Army Public Relations, dismissed these reports as unfounded.
A news outlet had alleged that numerous Nigerian soldiers were resigning because of corruption and low morale. However, the statement condemned these allegations as misleading and a deliberate attempt to create discontent and undermine the Nigerian Army’s reputation and the dedication of its personnel.
Major General Nwachukwu clarified that, similar to other military organizations worldwide, service in the Nigerian Army is voluntary rather than mandatory. This means that personnel have the freedom to resign following established procedures.
He explained that the resignation process allows personnel to prepare and manage their entitlements, including pensions and gratuities, as outlined in the Harmonized Terms and Conditions of Service (Officers/Soldiers).
Contrary to the report’s implications, the statement emphasized that Nigerian Army personnel are highly motivated, and their welfare is a priority under the leadership of Chief of Army Staff, Lieutenant General Taoreed Lagbaja.
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