MAN welcomes CBN interest rate cut to 23%

The Manufacturers Association of Nigeria (MAN) has welcomed the Central Bank of Nigeria’s decision to reduce the Monetary Policy Rate by 350 basis points to 23 per cent, describing it as a positive move that alleviates pressure on businesses. MAN’s Director General, Segun Kadir, believes that this reduction signals a shift away from the tight monetary stance that has previously constrained manufacturing activity.

The association anticipates that the lower policy rate will decrease borrowing costs, improve access to working capital, inventory financing, and investment funds. However, MAN cautioned that the benefits may be limited as the Cash Reserve Ratio remains at 45 per cent for Deposit Money Banks. The association called for a gradual review of the high CRR to free more deposits for lending to the real sector, provided financial stability is not compromised.

MAN also urged stronger coordination between monetary and fiscal authorities, single-digit concessionary financing for manufacturers, and measures to ensure banks pass on the rate cut into lower commercial lending rates.

Brief written by urgent.news from Punch's own syndicated text. Machine-written — may contain errors; check the original before relying on it.