The Manufacturers Association of Nigeria (MAN) has expressed concern over the increase in Monetary Policy Rate (MPR) by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) .

Segun Ajayi-Kadir, Director General of MAN, said “Clearly, the increase in MPR has widened the journey farther away from the preferred single digit interest rate regime. It is not manufacturing friendly considering the myriad of binding constraints already limiting the performance of the sector”.

In his words “MAN is therefore concerned about the ripple effects of this decision and its implications for the manufacturing sector that is visibly struggling to survive the numerous strangulating fiscal and monetary policy measures and reforms.”

He noted that “Consequently, manufacturers are hopeful that the stringent conditionalities for accessing available development funding windows with the CBN will be relaxed to improve the flow of long-term loans to the manufacturing sector at single digit interest rate”.

Adding that “The expectation is that MPC will ensure that future adjustments of MPR takes into consideration the trend of core inflation rather than basing decision on headline and food inflation. This will no doubt shield the sector from the backlashes from the 14% MPR, ramp up production and guarantee sustained growth in the overall best interest of the economy”.