The Manufacturers Association of Nigeria (MAN), yesterday, lamented that at between 30 and 37 per cent, borrowing costs remain high for manufacturers, and this rate hinders production and reduces the manufacturing sector’s competitiveness.
MAN, therefore, called on the Central Bank of Nigeria (CBN) to review downward the benchmark interest rate in subsequent meetings of its Monetary Policy Committee (MPC).
The Association said adopting a downward review of the rate will lessen the burden of high borrowing costs and incentivize long-term investments in manufacturing, particularly in capital-intensive sub-sectors.
MAN Director General Segun Ajaiyi-Kadir made this position known on Wednesday while reacting to the report of the 303rd meeting of the MPC held from November 24 -25, 2025.
The MPC had at the meeting agreed to retain the benchmark interest rate at 27.00 per cent that was fixed at its September meeting.
It also adjusted the Standing Facilities Corridor to +50 / -450 basis points around the MPR from +250/-250 basis points to encourage borrowing from the central bank, pushing commercial banks to lend more and reducing upward interest-rate volatility.
The cash Reserve Ratio (CRR) was also retained at 45 per cent for commercial banks and 16 per cent for merchant banks.
The Committee also retained the 75 per cent CRR on non-TSA public sector deposits to manage excess liquidity while maintaining the liquidity ratio at 30 per cent.
The Committee members expressed satisfaction with Nigeria’s macroeconomic stability, highlighting key improvements such as the continued slowdown in inflation, steady real output growth, a stable exchange rate, and stronger external reserves.
They particularly noted the accelerated pace of disinflation standing at 16.05 per cent in October 2025, the most significant in seven months, attributing this progress to sustained monetary tightening, increased capital inflows, a surplus in the current account, as well as moderating fuel prices, all of which have collectively eased the inflationary pressures.
Reacting, MAN said it appreciates the MPC’s decision to halt the increase in MPR and to maintain the 27.00 per cent fixed at the last meeting, including the decision to adjust the standing facilities corridor to enhance liquidity
Ajaiyi-Kadir, however, said MAN’s expects a further reduction in the rate to reduce the cost of borrowing for manufacturers.
He lamented that despite the reduction at the MPC’s last meeting, borrowing costs of 30 to 37 per cent remain high for manufacturers, which hinders production and reduces the competitiveness of the sector.
The MAN DG insisting that it is essential to reduce the cost of funds to encourage borrowing for expansion and investment.
He added that the emphasis on exchange rate stability and improved forex liquidity is also vital, as manufacturers rely on foreign exchange for imports.
He further stated that persistent high lending rates will further limit access to affordable credit for manufacturers, especially those within the Small and Medium Industries (SMI) cadre.
‘The situation is complicated with prevailing structural challenges like poor infrastructure, high logistics costs, inadequate electricity supply, high energy cost and insecurity that cumulatively raise production costs and weaken competitiveness,’ Ajaiyi-Kadir said.
He urged the CBN and other policymakers to continue to pursue policies that foster inclusive growth, incentivize manufacturing and address binding constraints limiting the performance of the sector.
‘The CBN should also strengthen handshake with fiscal authority to promote reforms capable of unlocking the full potential of the manufacturing sector.
CBN should consider additional policy instruments or incentives that facilitate credit flow to the real sector of the economy, especially the manufacturing sector,’ the MAN chief added.Top of FormBottom of Form
Ajaiyi-Kadir also urged closer collaborate between the Federal Government and CBN to stabilize the naira and manage external risks by monitoring the potential risk of capital flights because of the MPC’s corridor review that will push banks to lend more.
MAN also recommended the implementation of complementary fiscal measures that support industrial development and promote structural reforms especially in real sectors of the economy including Agricultural, Manufacturing and Energy sectors to further reduce inflationary pressure.
It also called for urgent resolution of the lingering spate of insecurity in the country, especially in agricultural and industrial zones to stabilize food supply and raw material inputs.
‘A secure environment is critical to food security, lower inflation rate and sustained industrial growth in both urban and rural areas,’ Ajaiyi-Kadir said.
He also urged CBN to monitor and evaluate the impacts of previous MPC decisions on credit access to the real sector to aid informed position at subsequent meetings.