“Over the last quarter, countries such as members of the Euro Area, the United Kingdom, Denmark, Australia, China, India, Thailand and Egypt, have implemented interest rate cuts to bolster economic growth and support productive sectors. “
• CBN Governor, Olayemi Cardoso
The Manufacturers Association of Nigeria (MAN) has again condemned the Central Bank of Nigeria (CBN) for retaining its Monetary Policy Rate (MPR) at 27.5 percent, saying” it’s sinking the manufacturing sector deeper into stagnation.”
CBN, had during its 300th Monetary Policy Committee (MPC) meeting held in Abuja, on Tuesday, May 20, retained the rate hike at 27.5 percent, and cash reserve ratio for Deposit Money Banks at 50 percent and 16 percent for merchant banks.
Also Liquidity Ration of banks was also maintained at 30 percent.”
Reacting, Segun Ajayi-Kadir, the Director-General of MAN, noted that the local manufacturers are deeply concerned and worried about the continued decision of the CBN to maintain the high interest rate at 27.5 percent since November 2024.
“We are perturbed that when most progressive economies are charting a course toward industrial recovery and macroeconomic stability, Nigeria’s monetary stance tends to lead us in a different direction.
Over the last quarter, countries such as members of the Euro Area, the United Kingdom, Denmark, Australia, China, India, Thailand and Egypt, have implemented interest rate cuts to bolster economic growth and support productive sectors.
Yet, our rigidity continues to create unintended consequences that may deepen the parlous performance of the productive sector
.”A nation cannot industrialize on the back of prohibitively expensive credit. With the benchmark interest rate held at 27.5 percent, Nigeria has become the 6th most expensive country to source credit as local manufacturers grapple with an average lending rate of over 37 percent.
This policy posture is not only inflationary, but is suffocating the capacity of the manufacturing sector,” he said.
However, the CBN Governor, Olayemi Cardoso, in defending the MPR reiterated that investors don’t go where there’s instability.
With stability comes confidence. With confidence comes investment.
And with investment comes growth and output. That’s the path Nigeria is now firmly on… We are on a mission to restore investors’ confidence in the economy.
CBN is walking the talk. Publishing our audited statements validates our stance on orthodox monetary policy.- The trust deficit is real. But so is our resolve.
We’re making the system stronger, safer, and more accountable…,” he said.
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