MAN Kicks against CBN interest rate hike

By Ebere Obike

The Manufacturers Association of Nigeria MAN, has kicked against the raising of interest rate to 26.25% by the Central Bank of Nigeria,CBN, urging the apex bank to always consult wide before taking such serious decisions.

President of MAN, Mr Francis Meshioye, made the call in Lagos , at the presentation of the MAN CEO’S Confidence Index, MCCI, which is a document constructed to measure changes in quarterly pulse of CEOs of manufacturing concerns in relation to changes in government policies and movement in macroeconomic indicators.

Mr. Meshioye noted that there is no nation that can survive with high interest rate.

Mr. MESHIOYE maintained that any decisions taken by the monetary policy Committee, of the CBN on the economy will surely have consequences on the manufacturing sector.

The MAN President who observed that the strategy of raising the Monetary Policy Rate, MPR has persisted for nearly two years without yielding positive results, pointed out that MAN had hoped that the Apex bank would explore alternative measures, in addressing the underlying causes of inflation, primarily cost-push factors.

According to him, MAN, earnestly urges the MPC to carefully evaluate the effects of these monetary policy actions on both the manufacturing sector and the broader economy.

Mr Meshioye, stressed that MAN advocates for robust collaboration between monetary and fiscal authorities and suggests considering some policy measures.

“Implement targeted interventions aimed at mitigating the underlying cost-push factors driving inflation, thereby alleviating the financial burden on manufacturers, Prioritise forex and credit allocation to the manufacturers and fast track the proposed recapitalization of the banking sector,
Emphasize the development of infrastructure within industrial hubs, he said.”

The Director General of MAN, Mr Segun Ajayi-Kadir, explained that the aggregate performance of 53.5 points is attributable to the undying resilience of manufacturers, reasonable gains recorded by the Naira in the latter part of the first quarter and the expectation of reasonable reduction in diesel price.

Mr Ajayi-Kadir, who was represented by Director, Special Purpose Vehicle , MAN, Mr Ambrose Oruche, emphasized undoubtedly that the manufacturing sector remains the most sustainable driver of steady economic growth, inflow of foreign exchange and enduring shared prosperity.

“MAN is therefore expectant that the Government will intentionally prioritize the manufacturing sector by implementing the sector-specific recommendations contained in this report and providing the required policy support and incentives. This is the surest way of revamping the sector and repositioning the economy towards sustainable growth and development”, he said.

Presenting the MAN CEO’S CONFIDENCE INDEX, the Director of Research, Mr OLUSEGUN OSHIDIPE stated that the economic index within the 1st quarter of the year 2024 shows a slim increase from 51% to 53% of general performance of sector to the country’s Gross Domestic Product.

“Despite the harsh economic conditions the sector was able to move up on its economic performance, he said.”

The event was well attended by members of Manufacturers Association of Nigeria and business journalists