The Manufacturers Association of Nigeria (MAN) has once again voiced frustration over the persistently high interest rates in the country, warning that the situation continues to place Nigeria’s manufacturing sector at a major disadvantage globally.
Speaking on the issue, MAN’s Director General, Segun Ajayi-Kadir, expressed cautious optimism following the Central Bank of Nigeria’s (CBN) recent decision to cut the Monetary Policy Rate (MPR) by 50 basis points, from 27.5% to 27%. He noted that while the move was commendable, more aggressive rate reductions are needed to revive industrial productivity and competitiveness.
Ajayi-Kadir lamented that manufacturers have faced crippling borrowing costs over the past five years, driven by the CBN’s tight monetary stance. “If you give a manufacturer anything above 5% as interest, competitiveness is compromised,” he said. “Our rivals abroad borrow at much lower rates. You can’t compete effectively under such conditions.”
He further emphasized the need for a special financing window that allows manufacturers to access credit at single-digit interest rates, saying this could spur industrial expansion and job creation.
Ajayi-Kadir urged the apex bank to make an “intentional decision” that encourages commercial banks to lend more actively to manufacturers, stressing that industrial growth is key to achieving sustainable economic development.
The recent MPR cut, alongside the adjustment of the asymmetric corridor around the benchmark rate to +250/-250 basis points, is expected to create room for a friendlier lending environment — though stakeholders like MAN believe more bold actions are necessary to revive Nigeria’s manufacturing competitiveness.
