The Manufacturers Association of Nigeria (MAN), Lagos Chamber of Commerce and Industry (LCCI), and Nigeria Employers’ Consultative Association (NECA) have expressed grave concern over the Central Bank of Nigeria’s decision to maintain the Monetary Policy Rate (MPR) at 27.5%, a level they describe as unsustainably high for productive sectors.

Following Tuesday’s Monetary Policy Committee (MPC) meeting, where the CBN opted to retain all rates unchanged, stakeholders warned that the current monetary stance is choking the manufacturing sector and deterring investment.

In a statement signed by its Director-General, Mr Segun Ajayi-Kadir, MAN criticised the MPC’s rigid policy posture, which it said prioritises short-term foreign capital inflows over long-term industrial growth.

“A nation cannot industrialise on the back of prohibitively expensive credit,” said Ajayi-Kadir, noting that with lending rates surpassing 37%, Nigeria ranks as the sixth most expensive country to access credit. He described the policy as inflationary and destructive to manufacturing.

He warned that continued high rates could lead to reduced domestic production, increased import dependence, and loss of industrial competitiveness—undermining the government’s “Nigeria First” policy.

Ajayi-Kadir said finance costs for manufacturers surged by over 44%—from ₦1.43 trillion in 2023 to ₦2.06 trillion in 2024—while the Manufacturers CEO’s Confidence Index dropped from 50.7 to 48.3, signalling reduced industry optimism.

He criticised the imbalance between rising bank profits and declining industrial returns, saying: “The economy now rewards intermediaries over producers—an unsustainable paradox.”

The group called on the CBN to significantly reduce interest rates, deploy policy incentives for single-digit concessionary lending, and fast-track the disbursement of the ₦1 trillion Stabilisation Fund for manufacturers.

They also urged the CBN to settle outstanding $2.4 billion in forex forward contracts and peg customs duty exchange rates for critical industrial imports to mitigate inflationary impacts.

Echoing these concerns, LCCI Director-General Dr Chinyere Almona described the current MPR as a major barrier to private sector growth, particularly for micro, small, and medium enterprises.