The Manufacturers Association of Nigeria (MAN) has expressed optimism that the Central Bank of Nigeria’s (CBN) recent decision to slash the Monetary Policy Rate (MPR) by 50 basis points will open the door for deeper lending rate reductions, easing financing costs for the nation’s beleaguered manufacturing sector.
Speaking on Tuesday at a press conference ahead of MAN’s 2025 Annual General Meeting, Director-General Segun Ajayi-Kadir noted that Nigerian manufacturers have endured five years of high borrowing costs due to an aggressive monetary tightening stance by the CBN.
“With recent reforms moderating inflation, stabilizing the exchange rate, and improving investor confidence, the time is right for further rate relaxations,” he said. “We are definitely looking forward to additional reductions. If a manufacturer pays more than 5% interest, competitiveness is compromised, as our rivals are borrowing at much lower rates.”
Ajayi-Kadir also advocated for a special financing window allowing manufacturers to access loans at rates below the MPR. He described such a concession as pivotal for driving industrial growth, urging the CBN to create conditions that make commercial banks more willing to lend to manufacturers.
MAN president Otunba Francis Meshioye, highlighted the newly- introduced “Nigeria First” policy, requiring government Ministries, Departments, and Agencies (MDAs) to prioritise locally produced goods and services.
“The policy marks a turning point for our nation, signaling a commitment to industrialisation and strengthening local value chains,” Meshioye said. He added that success depends on inclusive implementation and addressing structural challenges in infrastructure, regulation, and financing.
This year’s MAN AGM, themed: “Nigeria First: Prioritising Patronage of Made in Nigeria,” will offer a platform to explore sustainable industrial growth and job creation, with Africa’s foremost industrialist Aliko Dangote delivering the keynote address.
The CBN Monetary Policy Committee (MPC) reduced the MPR from 27.5 per cent to 27 per cent at its 302nd meeting, while narrowing the asymmetric corridor to +250/-250 basis points from the previous +500/-100 basis points, according to CBN Governor Olayemi Cardoso.
