📍 Lagos, May 21, 2025 (Naija247news) — The Manufacturers Association of Nigeria (MAN) has called on the Central Bank of Nigeria (CBN) to urgently align its monetary policy with the global trend of interest rate cuts, warning that Nigeria’s current high benchmark lending rate is exacerbating stagflation and crippling industrial productivity.
In a statement issued in Lagos on Wednesday, MAN Director-General, Mr. Segun Ajayi-Kadir, reacted to the CBN’s recent decision to maintain the Monetary Policy Rate (MPR) at 27.5%, urging a significant downward revision to reflect evolving economic realities.
🏭 High Rates Are “Suffocating” the Real Sector
Ajayi-Kadir criticised the retention of the high MPR, asserting that “maintaining a high nominal interest rate under current inflation conditions is neither necessary nor justifiable.” He stressed that it prolongs economic pain for both manufacturers and consumers, while other economies are cutting rates to stimulate industrial recovery.
“While progressive economies like the Euro Area, UK, China, India, Egypt, and others have slashed interest rates, Nigeria remains rigid, deepening the already poor performance of the productive sector,” he said.
⚙ Nigeria Now Among Top Six Costliest Credit Markets
Ajayi-Kadir warned that with an average lending rate of over 37% for manufacturers, Nigeria has become the sixth most expensive country to access credit. He revealed that finance costs for Nigerian manufacturers surged by over 44%—from ₦1.43 trillion in 2023 to ₦2.06 trillion in 2024.
“A country cannot industrialise on the back of prohibitively expensive credit,” he said, describing the current monetary posture as “inflationary and destructive” to domestic production.
📉 De-inflation Trends Offer Room for Rate Cut
He argued that recent signs of easing inflation offer justification for a policy shift. “Real interest rates have improved, giving investors higher inflation-adjusted returns. This is the time to provide relief, not deepen the squeeze,” he added.
Ajayi-Kadir called for coordinated policy between the monetary and fiscal authorities to revive the manufacturing sector and prevent further stagnation.
💸 Key Recommendations by MAN:
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Immediate downward revision of the MPR to ease borrowing costs
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Use of moral suasion and policy tools to push banks toward single-digit interest loans for manufacturers
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Urgent release of the ₦1 trillion manufacturing stabilisation fund to support struggling industries
📉 Warning on Economic Resilience
“The current interest rate regime is undermining manufacturer confidence and threatening national economic resilience,” Ajayi-Kadir warned, stressing the need for urgent synergy between the CBN and fiscal authorities.
🧭 Summary
With lending costs at record highs and the manufacturing sector gasping under financial pressure, the Manufacturers Association of Nigeria has made an urgent appeal to the CBN to lower interest rates. According to MAN, Nigeria’s failure to follow the global wave of monetary easing may erode productivity, worsen stagflation, and derail industrial recovery efforts.
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Reporting by Godwin Okafor, The Naija247news in Lagos, Nigeria.
