The Manufacturers Association of Nigeria (MAN) has welcomed the decision of the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) to maintain the benchmark interest rate at 27% and adjust the standing facilities corridor.
However, the association urged the CBN to consider a downward review of the interest rate to reduce the high borrowing costs and incentivize long-term investments in the manufacturing sector.
In its position paper on the MPC meeting, MAN noted that despite the CBN’s efforts to stabilise the economy and ease inflationary pressures, the high lending rates of 30-37% remain a significant challenge to manufacturers.
The association emphasised that persistent high lending rates will limit access to affordable credit for manufacturers, especially small and medium-sized enterprises.
MAN also called on the government to strengthen fiscal discipline, invest in infrastructure, and implement complementary fiscal measures that support industrial development and promote structural reforms.
The association urged the government to resolve the lingering insecurity issues in the country, particularly in agricultural and industrial zones, to stabilise food supply and raw material inputs.
MAN made several recommendations, including a downward review of interest rates, additional policy instruments to facilitate credit flow to the real sector, and collaboration between the government and the CBN to stabilise the naira and manage external risks.
The association reiterated its commitment to working with the CBN and the government to promote economic growth and development, and urged the authorities to seize the opportunity to promote credit-led growth, especially in productive sectors, while managing risks through fiscal discipline and structural reforms.
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