MAN welcomes CBN interest rate cut to 23%

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The Manufacturers Association of Nigeria (MAN) has welcomed the Central Bank of Nigeria’s decision to cut the Monetary Policy Rate by 350 basis points to 23 per cent, describing it as a positive step that eases pressure on businesses.

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In its official position on the September 2026 MPC outcomes, the Director General, MAN, Segun Kadir, said the reduction signals a shift from the tight monetary stance that has constrained manufacturing activity.

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“The association expects the lower policy rate to reduce borrowing costs and improve access to working capital, inventory financing and investment funds,” Kadir said.

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However, MAN cautioned that the benefits may be limited while the Cash Reserve Ratio remains at 45 per cent for Deposit Money Banks.

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It called for a progressive review of the high CRR to free more deposits for lending to the real sector, provided financial stability is not compromised.

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The association also urged stronger coordination between monetary and fiscal authorities, single-digit concessionary financing for manufacturers, and measures to ensure banks transmit the rate cut into lower commercial lending rates.

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