The Manufacturers Association of Nigeria (MAN) is expressing strong concerns over the Central Bank of Nigeria’s (CBN) recent decision to raise the Monetary Policy Rate (MPR) by 150 basis points. The Director-General of MAN, Mr. Segun Ajayi Kadir, fears this move will further cripple the already struggling manufacturing sector.
Mr. Kadir argues that the higher interest rates will exacerbate existing challenges for manufacturers. Increased borrowing costs will make it more expensive to produce goods, limit access to loans for investment, and ultimately reduce Nigeria’s manufacturing competitiveness in the global market. He accuses the Monetary Policy Committee (MPC) of prioritizing the financial sector over the real sector (manufacturing) by focusing solely on curbing inflation.
The MAN fears that this monetary tightening will stifle growth in the manufacturing sector. With limited access to capital and higher production expenses, manufacturers may be forced to delay or cancel expansion plans, hindering their ability to innovate, expand production, or explore new markets. This, in turn, could constrain the sector’s overall contribution to Nigeria’s economic development.