By Charles Pemu 
LAGOS—The Manufacturers Association of Nigeria (MAN) has continued to voice deep concern over the persistently high interest rates in the country, warning that the punishing borrowing costs are undermining the competitiveness of the nation’s industrial sector on the global stage.
MAN Director General, Segun Ajayi-Kadir, acknowledged the Central Bank of Nigeria’s (CBN) recent 50 basis points reduction in the Monetary Policy Rate (MPR), but stressed that it must be the start of a trend toward deeper cuts to resuscitate the struggling sector.
“If you give a manufacturer anything more than 5% to pay as interest, competitiveness is compromised, as our rivals are borrowing at much lower rates,” Ajayi-Kadir lamented, noting that manufacturers have endured years of aggressive tightening policies.
Call for Concessional Lending
The DG argued that the current economic climate—marked by moderating inflation, a stabilizing exchange rate, and improved investor confidence—now provides the opportune moment for the CBN to relax its tight money policy.
He pointedly reiterated the need for a special financing window that would allow manufacturers to access loans at rates significantly below the benchmark MPR. Such a concession, he argued, is “pivotal for driving industrial growth.”
Ajayi-Kadir urged the apex bank to make an “intentional decision” to incentivize commercial banks to lend to manufacturers, thereby enabling the sector to contribute more significantly to the nation’s economic growth.
MPC’s Recent Decision
The appeal follows the CBN Monetary Policy Committee (MPC) decision last week to reduce the MPR from 27.5 percent to 27 percent. The committee also narrowed the asymmetric corridor around the benchmark rate to +250/-250 basis points, signaling a shift in policy direction.