The Manufacturers Association of Nigeria (MAN) has said that the decision of the Central Bank of Nigeria (CBN) to maintain the Monetary Policy Rate (MPR) at 27% is unfavourable, noting that the current lending rate at 30-37% has continued to undermine production and erode competitiveness in the sector.
The Association, in a statement released on Wednesday, said the cost of borrowing remains the biggest constraint facing factories across the country.
MAN noted that while the CBN’s emphasis on exchange rate stability and improved forex liquidity is vital, as manufacturers rely on foreign exchange for imports, “it is also essential to reduce the cost of funds to encourage borrowing for expansion and investment.”
While commending the CBN for holding the MPR at 27%, the group said what it expected was a further reduction.
“The expectation of the Association is a further reduction in the rate to reduce the cost of borrowing for manufacturers,” MAN stated.
“MAN urges the Central Bank 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,” the statement read in part.
To unlock the sector’s potential and convert recent macroeconomic gains into real productivity, MAN called for the following:
The Monetary Policy Rate (MPR) is the benchmark interest rate set by the CBN, while the lending rate is the actual rate commercial banks charge borrowers.
At the end of 303rd meeting held between November 24 and 25, the CBN’s Monetary Policy Committee (MPC) retained the MPR at 27%, citing continued macroeconomic stability, including a sharper-than-expected drop in inflation to 16.05% in October 2025, steady output growth, a stable exchange rate, and stronger external reserves.
To improve liquidity and push banks to lend more, the MPC adjusted the Standing Facilities Corridor to +50/-450 basis points around the MPR, while keeping the Cash Reserve Ratio at 45% for commercial banks and 16% for merchant banks. The 75% CRR on non-TSA public sector deposits was also retained.