Nigeria’s high interest rates in the manufacturing industry are a source of worry; it calls on the Central Bank of Nigeria (CBN) to realign its monetary policy to drive growth.
MAN calls on the apex bank to cut the benchmark interest rate to curb inflation as well as enhance productivity in major sectors such as manufacturing and agriculture.
Following the CBN Monetary Policy Committee sitting on July 21 and 22, 2025, and its-unanimous resolution to maintain the Monetary Policy Rate unchanged at 27.5 percent, the appeal begins. The producers are in disagreement, while the committee believes that this move will have inflation continue to drop.
MAN contends that the continuing high-interest-rate environment is killing off the actual economy. The group said that current borrowing rates have increased past 35 percent, virtually shutting off cheap capital for farmers. From this have followed rising manufacturing costs, higher consumer product prices, reduced capacity utilization, and a steep increase in unsold goods.
According to MAN, whereas unsold inventory nearly doubled from ₦1.14 trillion in 2023 to ₦2.14 trillion in 2024, manufacturers’ capacity utilization dropped to 57 percent in 2024. These figures point to a sector under severe stress as investment plans are stopped and production declines.
The association is supporting an interest rate cut supported by strong fiscal policy changes promoting access to longterm funding, therefore counteracting this tendency by increasing local production and stimulating job creation.
Among its policy suggestions, MAN urged collaborative effort between the CBN and the federal government by acting to:
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Lowering loan rates will help to ease credit constraints in the manufacturing industry.
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Encourage regional material by local sourcing and backward integration.
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Handle security concerns to support increased agricultural output and reduced food costs.
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Boost economic inclusion by income redistribution to increase household purchasing power.
Even if headline inflation slowed to 22.22 percent in June 2025 from 22.97 percent in May, food inflation continues to rise, clearly showing that more fundamental issues remain to be resolved.
MAN emphasized that sustainable growth can only be achieved by a favorable policy climate that fosters local enterprises and enhances competitiveness. Absent such changes, Nigeria’s industrial base is in danger of further collapse.
