MAN Praises CBN's Rate Cut to 23% for Business Relief

The Manufacturers Association of Nigeria (MAN) has expressed approval of the Central Bank of Nigeria's decision to reduce the Monetary Policy Rate by 350 basis points to 23%. Segun Kadir, the Director General of MAN, stated that this reduction is a positive move that alleviates pressure on businesses and signals a shift from a restrictive monetary policy that has hindered manufacturing activities.

Kadir anticipates that the lower policy rate will decrease borrowing costs and enhance access to working capital, inventory financing, and investment funds. However, MAN also warned that the advantages of this rate cut may be limited due to the Cash Reserve Ratio, which remains at 45% for Deposit Money Banks.

The association called for a review of the high Cash Reserve Ratio to allow more deposits for lending to the real sector, ensuring that financial stability is not compromised. Additionally, MAN urged for better coordination between monetary and fiscal authorities and advocated for single-digit concessionary financing for manufacturers.