Manufacturers Association Calls for Lower Lending Rates
The Monetary Policy Committee of the Central Bank of Nigeria reduced the Monetary Policy Rate to 23%, which business stakeholders view as a positive development. Segun Ajayi-Kadir, the director-general of the Manufacturers Association of Nigeria (MAN), stated that while the reduction signals a willingness to ease pressure on the real sector, further cuts are necessary to lower lending rates.
He highlighted that manufacturers currently face borrowing rates of 27% to 30%, which are unsustainable compared to competitors in Egypt, Morocco, and South Africa, who borrow at 8% to 12%. Ajayi-Kadir called for the Central Bank to implement measures such as reducing the Cash Reserve Ratio and operationalizing the N1 trillion Manufacturing Stabilisation Fund at 9%.
Dr. Chinyere Almona, director-general of the Lagos Chamber of Commerce and Industry, also urged the Central Bank to ensure that the 350 basis points cut translates into affordable credit for businesses, particularly SMEs.
Plus234Feed summary based on reporting from Leadership Newspaper. Read the original report below.
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