By Seun Ibiyemi
The Director General of the Manufacturers Association of Nigeria (MAN), Mr. Segun Ajayi-Kadir, mni, has urged the Central Bank of Nigeria (CBN) to reduce the Monetary Policy Rate (MPR) to below 20 per cent, warning that the current high-interest-rate regime is constraining access to finance and undermining the competitiveness of Nigeria’s manufacturing sector.
Ajayi-Kadir made the call in the association’s Manufacturers’ CEOs Confidence Index (MCCI) Report for the Second Quarter of 2026, which identified limited access to finance as the most pressing challenge confronting manufacturers during the period.
According to the MAN Director General, manufacturers remain burdened by expensive bank loans, a situation linked to the CBN’s benchmark interest rate of 26.5 per cent, which has pushed commercial lending rates beyond the reach of many operators.
The report noted that two out of every three manufacturing chief executives described commercial bank lending rates as a major disincentive to productivity, while many also complained that the volume of credit available to the sector remained inadequate to support investment and expansion.
Ajayi-Kadir said the survey ranked limited access to finance ahead of frequent power outages, inadequate foreign exchange availability, high interest rates, low patronage of locally manufactured products and multiple taxation as the leading constraints facing manufacturers in the second quarter of 2026.
Despite the financing challenges, the MAN Director General disclosed that manufacturers regained confidence during the review period, with the aggregate Manufacturers’ CEOs Confidence Index rising to 52.1 from 48.7 in the first quarter, reflecting optimism about the business outlook.
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He explained that the improvement in confidence was driven largely by expectations that recent government initiatives, including the Nigeria Industrial Policy, the “Nigeria First” Policy and tax reforms, would create a more supportive operating environment for manufacturers, even though prevailing business conditions remained difficult.
To strengthen the sector, Ajayi-Kadir recommended that the CBN lower the MPR to below 20 per cent, prioritise foreign exchange allocation for manufacturers importing essential machinery and raw materials, and improve access to affordable credit.
He also urged the Federal Government to intensify the implementation of policies promoting Made-in-Nigeria products, improve electricity supply, eliminate multiple taxation and arbitrary port charges, and recapitalise the Bank of Industry to increase lending to manufacturers.
