The Manufacturers Association of Nigeria (MAN) has called on the Central Bank of Nigeria (CBN) to reduce interest rates further, warning that the high cost of borrowing continues to stifle production and weaken competitiveness in the real sector.

The appeal followed the outcome of the Monetary Policy Committee (MPC) meeting held on November 24–25, where the committee retained the Monetary Policy Rate (MPR) at 27 per cent. The MPC also adjusted the Standing Facilities Corridor to +50/-450 basis points, maintained the Cash Reserve Ratio at 45 per cent for commercial banks and 16 per cent for merchant banks, and left the liquidity ratio unchanged at 30 per cent.

While the committee cited improving macroeconomic indicators, including a slowdown in inflation to 16.05 per cent in October, MAN insisted that the lending climate remains “punitive.” Its Director-General, Segun Ajayi-Kadir, said manufacturers had expected a further easing to reduce borrowing costs, which currently range between 30 and 37 per cent. “The rate hinders production and reduces the competitiveness of the sector,” he said, stressing that lower borrowing costs are essential to encourage expansion and investment.

MAN warned that persistently high interest rates would continue to limit access to affordable credit, particularly for small and medium-scale manufacturers. The association highlighted structural challenges such as poor infrastructure, high logistics expenses, erratic power supply, soaring energy costs, and insecurity, all of which escalate production costs.

The group urged the CBN and fiscal authorities to strengthen policy coordination and deepen reforms to unlock industrial potential. It recommended a downward review of rates in subsequent MPC meetings, the introduction of additional monetary instruments to facilitate credit flow to the real sector, and increased government investment in infrastructure to boost supply capacity.

On exchange rate management, MAN called for closer collaboration between the government and the CBN to stabilize the naira and mitigate risks of capital flight linked to the new MPC corridor adjustment. It also pressed for complementary fiscal measures to support industrial development, promote reforms in agriculture, manufacturing, and energy, and address inflationary pressures.

Other members of the organised private sector echoed MAN’s concerns. Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry, said businesses remain hopeful that borrowing costs will fall soon, noting that the MPC’s stance reflects its inflation objectives. Similarly, Segun Kuti-George, National Vice President of the National Association of Small-Scale Industrialists, said retaining the rate suggested the CBN was satisfied with the current pace of economic stabilisation, given inflation’s decline to about 16 per cent.