The Manufacturers Association of Nigeria (MAN) has renewed calls for deeper interest rate cuts to ease the burden on industrial operators, warning that the current high cost of borrowing continues to undermine the sector’s global competitiveness.
Speaking on the recent 50 basis points reduction in the Monetary Policy Rate (MPR) by the Central Bank of Nigeria (CBN), MAN’s Director-General, Segun Ajayi-Kadir, expressed optimism that the move could signal the beginning of a gradual shift toward more supportive credit conditions for the manufacturing industry.
Ajayi-Kadir noted that Nigerian manufacturers have endured years of elevated lending rates, a result of the CBN’s sustained tightening cycle aimed at containing inflation. He said the situation has eroded competitiveness, especially when compared to manufacturers in countries where credit is available at single-digit interest rates.
“With recent reforms moderating inflation, stabilizing the exchange rate, and improving investor confidence, the timing is right for the central bank to gradually relax rates,” he said.
“We are definitely looking forward to further reduction. 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. You are not going to get anything out of it because those with whom you compete are not borrowing at that rate,” he added.
The MAN boss also advocated for a special financing window for manufacturers, stressing that access to credit at below-MPR rates would be vital for stimulating industrial growth. He urged the CBN to take an “intentional decision” that encourages commercial banks to lend more willingly to the real sector, thereby supporting job creation and productivity.
The CBN’s Monetary Policy Committee (MPC), at its 302nd meeting in Abuja last week, cut the MPR from 27.5% to 27% and narrowed the asymmetric corridor around the rate to +250/-250 basis points from the previous +500/-100 basis points.
Analysts say while the marginal rate reduction is unlikely to immediately translate into cheaper loans, it represents a symbolic shift toward a more growth-friendly monetary stance — one manufacturers hope will evolve into broader reforms capable of reviving Nigeria’s struggling industrial base.