The Manufacturers Association of Nigeria has raised fresh concerns over the state of the manufacturing sector, warning that the high cost of credit and rising production expenses are posing serious threats to the sector’s recovery efforts.
Speaking in a statement on Monday, MAN said manufacturers are still grappling with inadequate access to affordable credit. According to the association, the volume of funds available to players in the sector is far below what is needed to sustain operations, expand capacity, and drive growth.
The association linked the challenge directly to the Central Bank of Nigeria’s monetary policy stance, particularly the Monetary Policy Rate. MAN explained that the elevated benchmark rate has pushed borrowing costs higher, making it difficult for manufacturers to access loans at rates that allow for profitable production.
The warning comes at a time when there are signs of renewed optimism among manufacturers. MAN noted that members’ confidence in the economy has shown some improvement in recent months, driven by expectations of policy reforms and improved business conditions.
Despite the improved confidence, the association stressed that urgent interventions are needed to address credit constraints and production costs. MAN urged the CBN and federal government to introduce targeted financing windows and policy adjustments that will reduce the cost of doing business and support the sector’s contribution to national economic growth.
