MAN urges govt to operationalise N1trn manufacturing fund at 9%

By Merit Ibe

The Manufacturers Association of Nigeria (MAN), has urged the Federal Government to operationalise the N1 trillion Manufacturing Stabilisation Fund at a nine per cent interest rate as part of measures to ease financing constraints and boost manufacturing activities.

The Association also called for broader fiscal and structural interventions following the latest decision of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) to reduce the Monetary Policy Rate (MPR) by 350 basis points.

The Director General of MAN, Segun Ajayi-Kadir, made the call in the association’s position on the September 2026 MPC decision.

The MPC, at its 307th meeting held on September 21 and 22, reduced the MPR from 26.5 per cent to 23 per cent.

MPC also adjusted the Standing Facilities Corridor (SFC) to +50/-300 basis points around the MPR, while retaining the Cash Reserve Ratio (CRR) at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks. The Liquidity Ratio was retained at 30 per cent.

In its response, MAN described the 350-basis-point reduction in the MPR as a significant easing of monetary policy, saying it could lower borrowing costs and improve the operating environment for businesses, particularly manufacturers that depend heavily on working capital and investment financing.

Commending the CBN for the rate cut, the association said it was consistent with its expectation that monetary easing should follow a period of economic stabilisation.

According to MAN, the reduction represents a gradual shift away from the tight monetary conditions of recent periods, which it said had contributed to weak manufacturing performance.

It noted that lower interest rates could improve manufacturers’ ability to finance inventories, raw materials, production cycles, equipment acquisition and business expansion.

However, MAN expressed concern over the retention of the CRR at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks, arguing that the relatively high reserve requirements could continue to limit funds available for lending to productive sectors.