Nigerian manufacturers welcome central bank rate cut but urge reform consistency

The Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) have commended the Central Bank of Nigeria’s decision to reduce the monetary policy rate (MPR) from 26.5 percent to 23 percent. Business leaders noted that the cut is a positive response to calls for easing pressure on the real sector of the economy.

However, industry groups expressed concern regarding the transmission of this cut to commercial lending rates. MAN Director-General Segun Ajayi-Kadir highlighted that despite previous rate reductions, bank lending rates have remained high. This concern is echoed by the International Monetary Fund (IMF), which has observed that Nigerian banks often implement rate increases promptly while delaying downward adjustments.

Separately, MAN President Otunba Francis Meshioye has called for greater clarity, consistency, and legal certainty in the implementation of federal government tax reforms. While supporting fiscal sustainability, Meshioye emphasized that reforms must promote investment and competitiveness. He also noted the importance of ensuring the Nigeria Industrial Policy (NIP) 2025 translates into measurable industrial improvements to position the country as a regional industrial hub.