Manufacturers Association of Nigeria Calls for Loan Reforms

The Manufacturers Association of Nigeria (MAN), led by its director-general Segun Ajayi-Kadir, has requested expanded access to concessionary single-digit financing and a dedicated foreign exchange window for manufacturers after the Central Bank of Nigeria (CBN) reduced the Monetary Policy Rate by 350 basis points. Ajayi-Kadir praised the CBN's decision as a positive development but expressed concerns that the retention of the Cash Reserve Ratio at 45 percent would limit banks' lending capacity.

He noted that while the MPR cut could lower fixed income yields and reduce government debt-servicing costs, its benefits would not be fully realized without credit expansion. Ajayi-Kadir urged stronger coordination between monetary and fiscal authorities, recommended a review of the Cash Reserve Ratio, and called for partnerships with banks to ensure lower lending rates for manufacturers.

He also highlighted the need for addressing structural constraints affecting the manufacturing sector and advocated for the operationalization of the N1 trillion Manufacturing Stabilisation Fund at nine percent interest.