Manufacturers in Nigeria have appealed to the Central Bank of Nigeria to reduce interest rates to revive industrial production and improve the competitiveness of locally made goods. The appeal follows growing concerns that high credit costs are restricting expansion in the real sector.
The Manufacturers Association of Nigeria said that the current benchmark rate makes borrowing prohibitively expensive. They argued that costly loans discourage investment, retooling and expansion, which ultimately limits output, reduces employment and weakens industrial capacity.
In their statement, manufacturers urged the CBN to create a supportive monetary environment for growth. They said lowering the Monetary Policy Rate would ease borrowing costs, stimulate production and reinvigorate sectors that have struggled under tight liquidity and high financing rates.
The appeal comes at a time when many manufacturers are avoiding new borrowing and focusing on servicing existing debts because lending rates sometimes exceed thirty-five per cent. This has dampened business optimism and reduced capacity utilisation across the industry.
Industrial leaders also called for coordinated fiscal and monetary policies to support long-term growth. They said such measures would not only reduce the burden on manufacturers but also create jobs, lower the cost of finished goods and position Nigeria’s manufacturing sector for sustainable recovery.
