The Manufacturers Association of Nigeria (MAN) has expressed concern over the current interest rate in Nigeria. MAN, at its annual media luncheon led by its president, Dr. Frank Jacobs Udemba, in Lagos, noted that one of its major focus for the year 2017 is advocacy for concessionary interest rate of five percent for manufacturers.
He noted that the association has done its best on its advocacy on lowering the monetary policy rate, stressing that it would continue asking for five percent interest rate for manufacturers as high interest rate will not favour them. Udemba urged the Central Bank of Nigeria to take a drastic action about lowering interest rate for manufacturers, stressing that MAN members were not happy with the current rate.
He noted that despite the Central Bank of Nigeria (CBN) selling $1.1 billion to 4,328 firms in November under its foreign exchange allocation guideline, manufacturers have decried non-implementation of the 60 per cent allocation directive given by the apex bank to commercial banks.
According to him, there are concerns over the non-implementation of the apex bank’s directive as manufacturers are yet to get access to the much needed foreign exchange to boost their operations. He said most of its members still depend hugely on the black market to source for forex in carrying out their daily production activities which he said has made many of its members close shops or have reduced their capacity utilisation.
Stressing that the commercial banks have refused to implement this policy since the apex bank is yet to make forex available in the country, stressing that the commercial banks have refused to implement the policy since they source for forex from alternative means.