Manufacturers Association Urges Banks to Lower Lending Rates

On September 25, the Manufacturers Association of Nigeria (MAN) expressed its support for the Central Bank of Nigeria's (CBN) decision to cut the Monetary Policy Rate (MPR) by 350 basis points to 23 percent from 26.5 percent. This decision was made during the CBN Monetary Policy Committee's 307th meeting in Abuja.

Segun Ajayi-Kadir, the Director-General of MAN, stated that while the rate cut is a positive development, manufacturers are concerned about the actual lending rates from commercial banks, which may remain between 27-30 percent. Ajayi-Kadir argued that such high rates hinder competitiveness, as manufacturers in other countries have access to borrowing rates of 8-12 percent.

MAN is advocating for additional monetary and fiscal measures, including a reduction in the Cash Reserve Ratio, the activation of a N1 trillion Manufacturing Stabilisation Fund at a nine percent interest rate, and a dedicated single-digit lending window for manufacturers. They also proposed a five percent development-finance rate for small and medium-sized enterprises.