High interest rates put Nigerian manufacturers at competitive disadvantage — MAN

…Seeks further MPR cut, peculiar financing window   

The Manufacturers Association of Nigeria (MAN) person continued to bemoan the precocious involvement rates successful the country, noting that the concern has spot the nation’s manufacturing assemblage astatine a competitory disadvantage against different countries of the world.

Director General of MAN, Segun Ajayi-Kadir, noted this portion expressing optimism that the caller determination 50 ground points simplification successful MPR by the Central Bank of Nigeria’s (CBN) volition pave the mode for deeper cuts successful lending rates to boost the struggling manufacturing assemblage successful the country.

He lamented that manufacturers person implicit the past 5 years endured precocious borrowing costs driven by an assertive tightening argumentation stance of CBN.

“With caller reforms moderating inflation, stabilizing the speech rate, and improving capitalist confidence, the timing is close for the cardinal slope to gradually unbend rates.

“We are decidedly looking guardant to further reduction. If you springiness a shaper thing much than 5% to wage arsenic interest, competitiveness is compromised, arsenic our rivals are borrowing astatine overmuch little rates. You are not going to get thing retired of it due to the fact that those with whom you vie are not borrowing astatine that rate,” helium stated.

Ajayi-Kadir reiterated the request for a peculiar financing model for manufacturers to alteration them entree loans astatine rates beneath the MPR. 

According to him, specified a concession is pivotal for driving concern growth, urging the apex slope marque an “intentional decision” to make conditions that marque commercialized banks much consenting to lend to manufacturers and frankincense lend importantly to economical growth.

Recall that the Monetary Policy Committee (MPC) of the apex slope had past week astatine its 302nd meeting, successful Abuja, reduced the MPR by 50 ground points, lowering it from 27.5 percent to 27 percent.

Alongside the MPR cut, the committee besides narrowed the asymmetric corridor astir the benchmark complaint to +250 and -250 ground points, from the erstwhile +500/-100 ground points.

The station High involvement rates enactment Nigerian manufacturers astatine competitory disadvantage — MAN appeared archetypal connected Vanguard News.