|•MAN Director-General, Segun Ajayi-Kadir.
The Manufacturers Association of Nigeria (MAN) has described the Central Bank of Nigeria’s (CBN) decision to reset the Monetary Policy Rate (MPR) to 23 per cent as a positive development, but said the reduction remains insufficient to close the competitiveness gap between Nigerian manufacturers and their counterparts in countries such as Egypt, Morocco and South Africa.
MAN is therefore calling on the CBN to continue its easing cycle, with the association advocating a sub-15 per cent MPR in the medium term.
The CBN, at its 307th Monetary Policy Committee (MPC) meeting on September 21–22, 2026, reset the MPR from 26.5 per cent to 23 per cent — a 350-basis-point reduction.
It also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR, while retaining the Cash Reserve Requirement (CRR) for deposit money banks at 45 per cent.
Reacting to the decision, MAN Director-General, Segun Ajayi-Kadir, said the rate reduction was encouraging but argued that its real test would be whether it translates into cheaper credit for manufacturers.
“This development is indicative of CBN’s positive disposition to easing the pressure on the real sector and responding to the persistent call of business, as well as yielding to the dynamism of the business environment,” he said.
“However, the elephant in the room remains the interest rate that an average manufacturer will pay when he or she approaches the bank.”
Ajayi-Kadir said further cuts would be necessary to produce a meaningful impact on the manufacturing sector.
“For meaningful impact we need to witness further deep cuts. Even at 23 per cent MPR, prime lending rate will still be 27 to 30 per cent.
This is not a palatable situation for any manufacturer. No manufacturer anywhere in the world can be competitive borrowing at 30 per cent,” he said.
Transmission Remains the Problem
The MAN chief expressed concern that previous reductions in the policy rate had not translated sufficiently into lower lending rates for businesses.
“We need to interrogate the transmission end. This is because our experience is that, despite the last three MPC cuts and drop in MPR, bank lending rates remained high. There is a need for additional measures to achieve noticeable impact,” he said.
He urged the CBN to deploy moral suasion and appropriate regulatory measures to encourage banks to transmit the reduction in their cost of funds to borrowers.
“We cannot have disinflation on paper and high cost of credit in factory,” Ajayi-Kadir said.
The concern comes against the backdrop of the CBN’s own acknowledgement that monetary-policy transmission has been weak.
In announcing the latest reset, Governor Olayemi Cardoso said the adjustment was intended to strengthen transmission and restore the MPR as the principal signal for interest rates.
