The Manufacturers Association of Nigeria (MAN) has expressed disappointment over the Monetary Policy Committee’s (MPC) decision to maintain the current interest rate, citing the need for a rate cut to boost the manufacturing sector.

The MPC, in its 301st meeting, maintained the Monetary Policy Rate (MPR) at 27.50 percent, citing persistent uncertainty in the policy environment and underlying price pressures.

MAN acknowledges the efforts of the MPC to stabilize monetary parameters but believes that maintaining the current rate is not sufficient to address inflationary pressure and reposition the economy on the path of growth.

The Association recommends a rate cut to reduce the cost of borrowing and attract investment in the real sector.

Additionally, MAN suggests that the government support the development of the real sector, especially the manufacturing and agricultural sectors, to aid the effectiveness of stabilization policy.

The Association’s President emphasized the need for a robust fiscal policy framework to facilitate improved access to long-term loans, enhanced productivity, and sustained economic growth.

MAN also recommends implementing a “Nigeria First” policy to boost local patronage, providing incentives for investment in backward integration and local sourcing of raw materials, and intensifying efforts to tackle insecurity in farming communities to boost agricultural production and reduce food inflation.