The Manufacturers Association of Nigeria has said that the recent decision taken by the Monetary policy committee of the Central Bank of Nigeria is impacting negatively on the manufacturing sector in the country.
In a statement issued by MAN’s Director General, Segun Ajayi-Kadir, the association said In specific terms, the current MPC decisions will further limit credit interventions, increase the cost of loans, upscale production cost, reduce access to funds, manufacturing investment and competitiveness. For instance, the current monetary stance will amongst others result in:
The association also emphasizes the importance of collaboration between the MPC and fiscal authorities to support the industry, which plays a crucial role in creating jobs, boosting productivity, generating foreign exchange earnings, and driving economic growth.
Acknowledging that the MPC’s efforts to address economic challenges such as inflation and exchange rate instability is good for the economy, MAN pointed out that the continuous increase in the prime lending rate over the past two years has not yielded the desired results for the manufacturing sector.
The Association urged the Central Bank of Nigeria (CBN) to explore alternative measures to address the underlying causes of inflation, which are primarily driven by cost-push factors.
Apart from calling for synergy between monetary and fiscal authorities,
MAN called for policy measures to enhance security in farming areas and business environments, including the passage of the Police Reform Bill and investments in surveillance systems and community policing.