The outgoing chairman of the Manufacturers Association of Nigeria (MAN) for Kwara and Kogi, Bioku Rahman, has called on the Central Bank of Nigeria (CBN) to reduce interest rates on loans for its members, citing the current rates as “business-killing”.
Speaking at the association’s 10th annual general meeting (AGM) on Tuesday, Rahman said, “We therefore ask the federal government to urgently direct the CBN to drastically reduce interest rates on industrial loans.
The interest rates charged on industrial loans and other loans released as COVID-19 palliatives should be significantly reduced further to one percent.”
Rahman also urged the CBN to waive conditions on foreign exchange (FX) policies for local manufacturers, saying, “CBN can widen the window of foreign exchange to local industries…”
In response, Damilola Adelodun, Kwara state commissioner for Business, innovation and technology, assured the association of the government’s support, he said , “The state has undertaken several key initiatives to support the manufacturing sector and overall economic development.”
Francis Meshioye, president of MAN, described the relationship between the state government and manufacturers as cordial, but appealed for infrastructure upgrades around industrial estates.
The AGM, themed ‘Tackling the Challenges of the Manufacturing Sector: A Win-Win For Government and Local Manufacturers’, came as the CBN recently raised the monetary policy rate (MPR) to 26.75 percent, with commercial banks charging an average maximum lending rate of 35 percent on loans to MAN members.
Boluwatife Enome
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