By Barnabas Esiet.
The Manufacturers Association of Nigeria (MAN) has expressed concerns regarding the impact of Nigeria’s Monetary Authority’s policy decisions on the manufacturing sector and the overall economy.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has been implementing monetary policies that have exacerbated macroeconomic instability and paralyzed manufacturing activities over the past two years.
MAN President, Francis Meshioye, at a media forum in Lagos on Thursday, lamented the negative effects of these decisions on the manufacturing sector, leading to disruptions in production, reduced investments, and uncertainty about the future.
He highlighted challenges such as foreign exchange volatility, rising energy costs, and food insecurity, which have contributed to inflationary pressures and weakened the competitiveness of the manufacturing industry.
While acknowledging the efforts of the MPC in addressing economic challenges, MAN emphasized the need for a thorough assessment of the impact of monetary policy decisions on the real sector and the economy as a whole.
The recent decision to raise the Monetary Policy Rate (MPR) by 150 basis points and maintain other key rates was seen as a move to curb inflation but may have unintended consequences on manufacturing activities.
MAN called for collaboration between monetary and fiscal authorities to support the manufacturing sector in driving employment, productivity, forex earnings, and economic growth.
The association urged the MPC to explore alternative measures to address inflationary pressures and consider targeted interventions to alleviate the financial burden on manufacturers.
Suggestions included prioritizing forex and credit allocation to manufacturers, investing in infrastructure within industrial hubs, promoting renewable energy sources, and incentivizing local sourcing to reduce reliance on imports.
Meshioye stressed the importance of finding a balance between addressing macroeconomic challenges and supporting the growth of the manufacturing industry.
The MAN President also urged the MPC to carefully evaluate the impact of monetary policy actions on the manufacturing sector and adopt policies that promote the resilience and competitiveness of manufacturers in Nigeria.
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