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The Manufacturers Association of Nigeria (MAN) has urged the Central Bank of Nigeria (CBN) to begin a downward review of interest rates at subsequent Monetary Policy Committee (MPC) meetings, warning that the current lending environment is stifling productive growth and undermining the gains of recent macroeconomic stability.
This call comes on the heels of the MPC’s 303rd meeting held on November 24–25, 2025, where the Committee retained the Monetary Policy Rate (MPR) at 27 percent and adjusted the Standing Facilities Corridor to +50/-450 basis points.
While the CBN highlighted slowing inflation down to 16.05 percent in October, exchange rate stability, and improved external reserves as key indicators of progress, manufacturers say the operating climate remains extremely challenging.
According to MAN, borrowing costs still range between 30 and 37 percent despite earlier tightening measures. Such rates, the Association said, are “unsustainably high” for manufacturers, especially small and medium industries, and continue to erode competitiveness, constrain expansion, and discourage long-term investment in capital-intensive production.
MAN noted that although the MPC’s corridor adjustment is intended to encourage banks to lend more by discouraging liquidity hoarding, the real sector cannot benefit without a corresponding cut in the benchmark rate.
Beyond interest rates, the Association stressed that structural bottlenecks—including unreliable power supply, high logistics and energy costs, infrastructure deficits and insecurity—continue to push up production costs and limit the sector’s ability to take advantage of emerging macroeconomic stability.
The group called on the CBN and fiscal authorities to strengthen coordination to unlock the full potential of the manufacturing sector. It also urged government to scale up infrastructure investment, improve fiscal discipline, and deepen reforms in key real sectors such as agriculture, manufacturing, and energy, noting that these are critical to sustaining disinflation and stabilizing input supply chains.
MAN further advised the Federal Government and the CBN to work closely to safeguard exchange rate stability, manage external risks, and monitor the possible risk of capital flight following the corridor review. It emphasized that resolving insecurity in industrial and agricultural zones remains essential for food security, lower inflation, and a stable supply of raw materials.
Reaffirming its appreciation of the CBN’s efforts to stabilize the economy, MAN maintained that the next phase of policy action must prioritize credit-led growth to translate macroeconomic gains into tangible industrial expansion. The Association added that evaluating the real-sector impact of previous MPC decisions will be key to shaping more effective interventions going forward.
At a time when Nigeria’s economic indicators appear to be improving, MAN insists that without cheaper credit and structural reforms, the country risks missing the opportunity to power manufacturing-driven, sustainable development.
