The Manufacturers Association of Nigeria (MAN) has expressed concerns over the Central Bank of Nigeria’s (CBN) recent hike in the Monetary Policy Rate (MPR) to 26.75%.
Announced during the CBN’s 296th meeting, this increase is expected to further constrain the manufacturing sector’s growth by reducing consumer purchasing power and production levels.
Segun Ajayi-Kadir, Director General of MAN, highlighted that despite MPR increases over the past two years, inflation remains high at 34.19%, the highest since March 1996.
The rising cost of borrowing escalates production costs and hinders reinvestment and expansion in the manufacturing sector.
MAN urged the federal government to direct the CBN to assess the impact of the MPC’s decisions on inflation and the productive sector over the past five years.