The Manufacturers Association of Nigeria (MAN) has called on the Central Bank of Nigeria (CBN) to reconsider its monetary policy stance and implement a rate cut to ease inflation and revive growth in the real sector, especially manufacturing and agriculture.
This call follows the recent decision of the CBN’s Monetary Policy Committee (MPC), which at its 301st meeting held on July 21 and 22, 2025, resolved to retain the Monetary Policy Rate (MPR) at 27.5%.
While acknowledging the committee’s efforts to stabilize key monetary indicators, MAN argued that maintaining the current high rate is not sufficient to tackle inflation or stimulate productive investment.
According to the association, the prolonged contractionary stance of the CBN has significantly strained manufacturers.
“The expectation of MAN is to have a rate cut that is supported by a robust fiscal policy framework capable of facilitating improved access to long-term loans, enhanced productivity, and sustained economic growth,” the association said in a statement.
MAN emphasized that reducing the interest rate would help lower the cost of borrowing, attract investment in the real sector, and boost economic activities.
It further urged the federal government to work in synergy with the CBN to implement supportive fiscal measures that would reposition manufacturing as a key growth engine.
As part of its broader recommendation to support the real sector, MAN urged the government and monetary authorities to:
While inflation has eased slightly, dropping to 22.22% in June 2025 from 22.97% in May, food inflation has continued to rise. MAN believes that a policy shift that supports domestic production, reduces input costs, and stimulates consumer spending is essential to unlock sustained economic growth.
The CBN at the end of its Monetary Policy Committee (MPC) meeting held on Tuesday, July 22, 2025, announced the retention of the Monetary Policy Rate (MPR) at 27.5%.
CBN Governor, Dr. Olayemi Cardoso, who briefed journalists after the meeting, said the committee’s decision to hold the rate steady was based on the need to sustain the disinflationary trend in the economy.
All 12 members of the MPC voted unanimously to maintain the MPR at 27.5%, signaling a unified stance among policymakers amid lingering inflationary pressures and exchange rate volatility.