The Manufacturers Association of Nigeria (MAN) has expressed concerns over the Central Bank of Nigeria’s (CBN) decision to increase the Monetary Policy Rate (MPR) to 27.25%.
The association argues that this move will compound challenges faced by the manufacturing sector, including rising production costs and declining consumer purchasing power.
MAN Director General, Segun Ajayi-Kadir, noted that the continuous rate hikes since May 2022 have stifled investment opportunities in technology, retooling, and expansion within the sector.
He emphasized that the manufacturing sector is grappling with depressed consumer demand, leading to lower capacity utilization and a growing stockpile of unsold products.
MAN recommends a comprehensive review of the effects of continuous rate hikes, promoting domestic production, and strengthening collaboration between monetary and fiscal authorities.