Manufacturers to CBN: Cut Interest Rate to Boost Growth, Tame Inflation

The Manufacturers Association of Nigeria (MAN) has urged the Central Bank of Nigeria (CBN) to cut its benchmark interest rate to ease inflation and stimulate economic growth, especially in the manufacturing and agricultural sectors.

This appeal follows the CBN Monetary Policy Committee’s decision at its July 21–22, 2025 meeting to retain the Monetary Policy Rate (MPR) at 27.5%. While acknowledging the CBN’s efforts to stabilize monetary indicators, MAN stressed that current rates remain too high to encourage investment or support production.

According to the association, lending rates to manufacturers now exceed 35%, triggering a surge in production costs, rising prices of goods, and a buildup of unsold inventory. In 2024, manufacturing capacity utilization dropped to 57%, while unsold inventory ballooned to ₦2.14 trillion from ₦1.14 trillion in 2023.

MAN called for a rate cut backed by strong fiscal policies to improve access to long-term loans and stimulate productivity. The association also advocated for a “Nigeria First” policy to support local patronage and reduce pressure on foreign exchange, increased food production through improved security and logistics, and broader income redistribution to enhance citizens’ welfare and consumption.