Photo caption: MAN logo
By Charles Okonji
The Manufacturers Association of Nigeria (MAN) has urged the Central Bank of Nigeria (CBN) to reduce the interest as it subsequently induce reduction in inflation.
This was contained in a press statement made available to the press by the association, in response to the recently released monetary policy rates released by the CBN.
According to the statement, MAN urged CBN to consider reduction of interest rate subsequently to reduce inflation and synergies with the fiscal authority to provide supportive measures that will reposition the manufacturing sector.
“Commence implementation of Nigeria First Policy to boost local patronage and provide incentives for investment in backward integration and local sourcing of raw materials. This will reduce the pressure on the dollar to the barest minimum.
“Intensify the ongoing efforts at tackling insecurity in farming communities to boost agricultural production and transport logistics, thereby reducing food inflation.
“Introduce measures that will improve redistribution of income, increase the welfare of the citizens and performance of the economy.” The statement reads.
Recall that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 301st meeting on July 21 and 22, 2025 to review recent economic and financial developments and the outlook.
According to MAN, the committee noted the decline in inflation rate to 22.22 percent in June 2025 from 22.97 percent in May 2025 but observed the uptick in food inflation to 21.97 percent in June 2025 from 21.14 percent recorded in May 2025.
MAN pointed out that the MPC decision reveals that the contractionary monetary stance is still maintained, explaining that the persistent increase in the rate over the years has impacted the sector negatively.
The Manufacturers umbrella body stressed that its expectation was to have a rate cut that is supported by a robust fiscal policy framework capable of facilitating improved access to long term loans, enhanced productivity and sustained economic growth.
“The same 27.50 percent MPR rate adopted months ago surged the cost of borrowing, as the average lending rate to manufacturers stood at more than 35% as at January 2025. The rate also had trickle down effects on production cost, impacting prices of finished products, capacity utilization, inventory of unsold goods and competitiveness negatively. In 2024 alone, capacity utilization stood at 57 percent, inventory of unsold goods rose to N2,140 billion from N1,141.33 billion recorded in 2023. These impact points combined to create uncertainty, disrupt production and investment plans,” says MAN.
