According to the Manufacturers Association of Nigeria and the Nigeria Employers’ Consultative Association, the Central Bank of Nigeria’s recent rise in the Monetary Policy Rate will exacerbate the impending recession in the manufacturing sector and negatively influence its operations in a variety of ways.
In a statement, MAN claimed the MPR increase will raise borrowing costs, discouraging further investment in the sector. “The increase in MPR from 18% to 18.50% will almost certainly lead to an increase in lending rates and worsen the manufacturing sector’s uncompetitiveness.”
“Analysts in the country predicted that the CBN and the MPC would raise lending rates at the conclusion of the Monetary Policy Committee.”
The central bank had increased the MPR from 11.5 per cent earlier last year to 18 per cent in March this year across six consecutive rate hikes.