High Loan Rates Choking Nigerian Manufacturing — Manufacturers Association of Nigeria (MAN) Tells Central Bank of Nigeria (CBN)

The Manufacturers Association of Nigeria (MAN) has raised concerns that persistently high lending rates are crippling production across the country. With borrowing costs ranging between 30 % and 37 %, many manufacturers are struggling to access affordable credit for operations and expansion.

MAN explained that these elevated rates significantly increase production expenses, lower capacity utilization, and make Nigerian goods less competitive. High borrowing costs have particularly discouraged small and medium-sized enterprises from seeking loans or investing in growth.

While acknowledging the Central Bank of Nigeria’s recent decision to hold the benchmark interest rate steady, MAN urged the bank to implement deeper rate cuts. The group also called on government policymakers to support industrial activity with complementary fiscal and infrastructure reforms.

MAN warned that unless borrowing costs are reduced, Nigeria’s manufacturing sector risks stagnation, which could negatively impact job creation, competitiveness, and overall economic growth.