MAN Critiques CBN's MPR Cut Amid High Lending Rates

The Manufacturers Association of Nigeria (MAN) has warned that the Central Bank of Nigeria's (CBN) recent reduction of the Monetary Policy Rate (MPR) from 26.5% to 23% may have limited impact on manufacturers if commercial lending rates continue to be as high as 30%. This position was articulated by MAN Director-General Segun Ajayi-Kadir in a discussion following the CBN's decision made during its Monetary Policy Committee meeting on September 21-22, 2026.

While Ajayi-Kadir welcomed the MPR cut, he emphasized that the real concern for manufacturers is the interest rates on loans from commercial banks, which could remain between 27% and 30%, putting Nigerian manufacturers at a disadvantage compared to competitors in Egypt, Morocco, and South Africa, where loan rates range from 8% to 12%. Ajayi-Kadir also questioned the effectiveness of previous MPR cuts, urging the CBN to ensure that banks lower borrowing costs.

The CBN's adjustment is aimed at improving monetary policy effectiveness amid easing inflation and rising economic activity.