Manufacturers Association of Nigeria (MAN) don talk to Central Bank of Nigeria (CBN) make dem reduce interest rates. Dem say the high borrowing cost don dey choke production and make dem lose competitiveness for manufacturing sector.

After di recent Monetary Policy Committee (MPC) meeting wey dem decide to keep di Monetary Policy Rate (MPR) for 27 percent, MAN express dem worry about wetin dis decision go mean for real sector. Di MPC also adjust di Standing Facilities Corridor, dem keep Cash Reserve Ratio for 45 percent for commercial banks and 16 percent for merchant banks, while di liquidity ratio remain di same for 30 percent.

MPC talk say some macroeconomic indicators dey show small improvement, like inflation wey don slow down to 16.05 percent for October. But MAN Director-General, Segun Ajayi-Kadir, talk say di lending environment still dey "punitive" for manufacturers, wey dey face borrowing costs wey dey between 30 and 37 percent.

Ajayi-Kadir acknowledge di MPC decision to no increase di MPR but e still talk say dem dey expect reduction to make di burden of high borrowing cost lighter. E talk say, "Di rate dey hinder production and dey reduce di competitiveness of di sector." E also emphasize say make dem reduce di cost of funds to encourage borrowing for expansion and investment.

MAN warn say if interest rates remain high, e go continue to limit access to affordable credit, especially for small and medium-sized manufacturers. Di association point out say dis problem dey worse because of structural wahala like poor infrastructure, high logistics costs, bad power supply, high energy prices, and insecurity, wey dey make production costs dey rise.

With all dis challenges, MAN urge di CBN and fiscal authorities make dem join hand to improve policy coordination and implement reforms wey go unlock industrial potential. Di association stress say dem need "downward review of di rate for future MPC meetings" to ease di burden of high borrowing costs and promote long-term investments, especially for capital-intensive sectors.

Furthermore, MAN suggest say make dem bring new monetary instruments wey go make credit flow better to di real sector, plus government go need to invest more for infrastructure to boost supply capacity. On di issue of exchange rate management, di association call for collaboration between di government and di CBN to stabilize di naira and reduce risks wey fit happen because of di recent MPC corridor adjustment, wey fit make banks lend more.

MAN also talk say dem need complementary fiscal measures wey go support industrial development, promote structural reforms for agriculture, manufacturing, and energy, plus address inflation pressure. Di association emphasize say dem need to solve insecurity for agricultural and industrial areas to stabilize supply of raw materials and food production, saying "a secure environment na critical for sustained industrial growth."

Other members of di organized private sector don join MAN to call for CBN to consider reducing interest rates. Dem acknowledge say di MPC decision to keep di benchmark rate for 27 percent dey try maintain economic stability, but dem still dey hope for future rate cuts.

Gabriel Idahosa, President of Lagos Chamber of Commerce and Industry, show optimism say borrowing costs go reduce soon, noting say di MPC stance dey align with dia inflation objectives. E talk say, "We dey hope say as we dey go, di rate go reduce. Dem still dey observe am. Di target to slow down inflation to 15 percent by December na factor, and dem don almost reach dia goal."

Segun Kuti-George, National Vice President of National Association of Small-Scale Industrialists, see di retention of di rate as sign say di CBN dey satisfy with di current pace of economic stabilization. E talk say, “What retaining di rate for 27 percent mean be say di CBN dey happy with di relative stability wey dey for di economy now, and dem no want anything wey go shake am, especially as we don get record say di inflation rate don come down to about 16 percent.”