The Manufacturers Association of Nigeria has called on the Central Bank of Nigeria to reduce the Monetary Policy Rate to below 20 per cent, saying the current 26.5 per cent benchmark has made bank credit too expensive and is stifling manufacturing growth.The association also urged the CBN to give manufacturers priority in foreign exchange allocation and called for the full implementation of the Federal Government’s Nigeria First Policy by ensuring that Ministries, Departments and Agencies procure at least 80 per cent of their goods from local manufacturers.According to the Manufacturing CEOs Confidence Index for the second quarter of 2026, obtained byThe PUNCHon Thursday, the aggregate MCCI rose to 52.1 points in Q2 2026 from 48.7 points in the first quarter, indicating renewed confidence among manufacturers despite persistent structural challenges.The Manufacturing CEOs Confidence Index is a quarterly survey of 400 chief executives of MAN member companies across the association’s 14 industrial zones and 10 sectoral groups. It measures business confidence based on current business conditions, employment trends and production expectations in relation to macroeconomic conditions and government policies.The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said, “The aggregate MCCI for Q2 2026 was 52.1.This was 3.4 points higher than that of Q1 2026, which stood at 48.7. Specifically, within the second quarter of 2026, manufacturers reported a return of confidence in doing business in Nigeria. This confidence was more related to the expected commercial environment than to the economy’s hitherto business and employment conditions.”He attributed the improved outlook to recent government reforms. “The recent tax laws, executive orders and other business-related policies (Nigeria Industrial Policy and ‘Nigeria First’ Policy) cast a more positive outlook on manufacturing executives,” Ajayi-Kadir said.Despite the improved confidence, he said manufacturers continued to grapple with limited access to finance, unreliable electricity supply, high production costs, inadequate foreign exchange, weak patronage of locally made products and multiple taxation.Ajayi-Kadir noted that manufacturing chief executives expressed dissatisfaction with the high cost and limited availability of bank credit, blaming the situation on the CBN’s monetary policy.“Manufacturers’ CEOs expressed dissatisfaction with the cost and size of credit from commercial banks to the manufacturing sector. They bemoaned high interest rates on bank loans, which they directly blamed on the CBN’s high Monetary Policy Rate. With the MPR at 26.5 per cent, commercial banks generate spreads by charging manufacturers higher loan rates,” he said.Related NewsFG unveils renewable energy programme for one million MSMEsNigeria, Canada sign pact for direct flights, trade boostFG moves to ban fuel price-fixing, market collusionHe added that manufacturers had yet to experience significant gains from improved infrastructure and remained dissatisfied with access to foreign exchange despite the country’s exchange rate liberalisation.“Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” The association also urged the CBN to give manufacturers priority in foreign exchange allocation and called for the full implementation of the Federal Government’s Nigeria First Policy by ensuring that Ministries, Departments and Agencies procure at least 80 per cent of their goods from local manufacturers.According to the Manufacturing CEOs Confidence Index for the second quarter of 2026, obtained byThe PUNCHon Thursday, the aggregate MCCI rose to 52.1 points in Q2 2026 from 48.7 points in the first quarter, indicating renewed confidence among manufacturers despite persistent structural challenges.The Manufacturing CEOs Confidence Index is a quarterly survey of 400 chief executives of MAN member companies across the association’s 14 industrial zones and 10 sectoral groups. It measures business confidence based on current business conditions, employment trends and production expectations in relation to macroeconomic conditions and government policies.The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said, “The aggregate MCCI for Q2 2026 was 52.1.This was 3.4 points higher than that of Q1 2026, which stood at 48.7. Specifically, within the second quarter of 2026, manufacturers reported a return of confidence in doing business in Nigeria. This confidence was more related to the expected commercial environment than to the economy’s hitherto business and employment conditions.”He attributed the improved outlook to recent government reforms. “The recent tax laws, executive orders and other business-related policies (Nigeria Industrial Policy and ‘Nigeria First’ Policy) cast a more positive outlook on manufacturing executives,” Ajayi-Kadir said.Despite the improved confidence, he said manufacturers continued to grapple with limited access to finance, unreliable electricity supply, high production costs, inadequate foreign exchange, weak patronage of locally made products and multiple taxation.Ajayi-Kadir noted that manufacturing chief executives expressed dissatisfaction with the high cost and limited availability of bank credit, blaming the situation on the CBN’s monetary policy.“Manufacturers’ CEOs expressed dissatisfaction with the cost and size of credit from commercial banks to the manufacturing sector. They bemoaned high interest rates on bank loans, which they directly blamed on the CBN’s high Monetary Policy Rate. With the MPR at 26.5 per cent, commercial banks generate spreads by charging manufacturers higher loan rates,” he said.Related NewsFG unveils renewable energy programme for one million MSMEsNigeria, Canada sign pact for direct flights, trade boostFG moves to ban fuel price-fixing, market collusionHe added that manufacturers had yet to experience significant gains from improved infrastructure and remained dissatisfied with access to foreign exchange despite the country’s exchange rate liberalisation.“Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” According to the Manufacturing CEOs Confidence Index for the second quarter of 2026, obtained byThe PUNCHon Thursday, the aggregate MCCI rose to 52.1 points in Q2 2026 from 48.7 points in the first quarter, indicating renewed confidence among manufacturers despite persistent structural challenges.The Manufacturing CEOs Confidence Index is a quarterly survey of 400 chief executives of MAN member companies across the association’s 14 industrial zones and 10 sectoral groups. It measures business confidence based on current business conditions, employment trends and production expectations in relation to macroeconomic conditions and government policies.The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said, “The aggregate MCCI for Q2 2026 was 52.1.This was 3.4 points higher than that of Q1 2026, which stood at 48.7. Specifically, within the second quarter of 2026, manufacturers reported a return of confidence in doing business in Nigeria. This confidence was more related to the expected commercial environment than to the economy’s hitherto business and employment conditions.”He attributed the improved outlook to recent government reforms. “The recent tax laws, executive orders and other business-related policies (Nigeria Industrial Policy and ‘Nigeria First’ Policy) cast a more positive outlook on manufacturing executives,” Ajayi-Kadir said.Despite the improved confidence, he said manufacturers continued to grapple with limited access to finance, unreliable electricity supply, high production costs, inadequate foreign exchange, weak patronage of locally made products and multiple taxation.Ajayi-Kadir noted that manufacturing chief executives expressed dissatisfaction with the high cost and limited availability of bank credit, blaming the situation on the CBN’s monetary policy.“Manufacturers’ CEOs expressed dissatisfaction with the cost and size of credit from commercial banks to the manufacturing sector. They bemoaned high interest rates on bank loans, which they directly blamed on the CBN’s high Monetary Policy Rate. With the MPR at 26.5 per cent, commercial banks generate spreads by charging manufacturers higher loan rates,” he said.Related NewsFG unveils renewable energy programme for one million MSMEsNigeria, Canada sign pact for direct flights, trade boostFG moves to ban fuel price-fixing, market collusionHe added that manufacturers had yet to experience significant gains from improved infrastructure and remained dissatisfied with access to foreign exchange despite the country’s exchange rate liberalisation.“Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” The Manufacturing CEOs Confidence Index is a quarterly survey of 400 chief executives of MAN member companies across the association’s 14 industrial zones and 10 sectoral groups. It measures business confidence based on current business conditions, employment trends and production expectations in relation to macroeconomic conditions and government policies.The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said, “The aggregate MCCI for Q2 2026 was 52.1.This was 3.4 points higher than that of Q1 2026, which stood at 48.7. Specifically, within the second quarter of 2026, manufacturers reported a return of confidence in doing business in Nigeria. This confidence was more related to the expected commercial environment than to the economy’s hitherto business and employment conditions.”He attributed the improved outlook to recent government reforms. “The recent tax laws, executive orders and other business-related policies (Nigeria Industrial Policy and ‘Nigeria First’ Policy) cast a more positive outlook on manufacturing executives,” Ajayi-Kadir said.Despite the improved confidence, he said manufacturers continued to grapple with limited access to finance, unreliable electricity supply, high production costs, inadequate foreign exchange, weak patronage of locally made products and multiple taxation.Ajayi-Kadir noted that manufacturing chief executives expressed dissatisfaction with the high cost and limited availability of bank credit, blaming the situation on the CBN’s monetary policy.“Manufacturers’ CEOs expressed dissatisfaction with the cost and size of credit from commercial banks to the manufacturing sector. They bemoaned high interest rates on bank loans, which they directly blamed on the CBN’s high Monetary Policy Rate. With the MPR at 26.5 per cent, commercial banks generate spreads by charging manufacturers higher loan rates,” he said.Related NewsFG unveils renewable energy programme for one million MSMEsNigeria, Canada sign pact for direct flights, trade boostFG moves to ban fuel price-fixing, market collusionHe added that manufacturers had yet to experience significant gains from improved infrastructure and remained dissatisfied with access to foreign exchange despite the country’s exchange rate liberalisation.“Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said, “The aggregate MCCI for Q2 2026 was 52.1.This was 3.4 points higher than that of Q1 2026, which stood at 48.7. Specifically, within the second quarter of 2026, manufacturers reported a return of confidence in doing business in Nigeria. This confidence was more related to the expected commercial environment than to the economy’s hitherto business and employment conditions.”He attributed the improved outlook to recent government reforms. “The recent tax laws, executive orders and other business-related policies (Nigeria Industrial Policy and ‘Nigeria First’ Policy) cast a more positive outlook on manufacturing executives,” Ajayi-Kadir said.Despite the improved confidence, he said manufacturers continued to grapple with limited access to finance, unreliable electricity supply, high production costs, inadequate foreign exchange, weak patronage of locally made products and multiple taxation.Ajayi-Kadir noted that manufacturing chief executives expressed dissatisfaction with the high cost and limited availability of bank credit, blaming the situation on the CBN’s monetary policy.“Manufacturers’ CEOs expressed dissatisfaction with the cost and size of credit from commercial banks to the manufacturing sector. They bemoaned high interest rates on bank loans, which they directly blamed on the CBN’s high Monetary Policy Rate. With the MPR at 26.5 per cent, commercial banks generate spreads by charging manufacturers higher loan rates,” he said.Related NewsFG unveils renewable energy programme for one million MSMEsNigeria, Canada sign pact for direct flights, trade boostFG moves to ban fuel price-fixing, market collusionHe added that manufacturers had yet to experience significant gains from improved infrastructure and remained dissatisfied with access to foreign exchange despite the country’s exchange rate liberalisation.“Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” This was 3.4 points higher than that of Q1 2026, which stood at 48.7. Specifically, within the second quarter of 2026, manufacturers reported a return of confidence in doing business in Nigeria. This confidence was more related to the expected commercial environment than to the economy’s hitherto business and employment conditions.”He attributed the improved outlook to recent government reforms. “The recent tax laws, executive orders and other business-related policies (Nigeria Industrial Policy and ‘Nigeria First’ Policy) cast a more positive outlook on manufacturing executives,” Ajayi-Kadir said.Despite the improved confidence, he said manufacturers continued to grapple with limited access to finance, unreliable electricity supply, high production costs, inadequate foreign exchange, weak patronage of locally made products and multiple taxation.Ajayi-Kadir noted that manufacturing chief executives expressed dissatisfaction with the high cost and limited availability of bank credit, blaming the situation on the CBN’s monetary policy.“Manufacturers’ CEOs expressed dissatisfaction with the cost and size of credit from commercial banks to the manufacturing sector. They bemoaned high interest rates on bank loans, which they directly blamed on the CBN’s high Monetary Policy Rate. With the MPR at 26.5 per cent, commercial banks generate spreads by charging manufacturers higher loan rates,” he said.Related NewsFG unveils renewable energy programme for one million MSMEsNigeria, Canada sign pact for direct flights, trade boostFG moves to ban fuel price-fixing, market collusionHe added that manufacturers had yet to experience significant gains from improved infrastructure and remained dissatisfied with access to foreign exchange despite the country’s exchange rate liberalisation.“Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” He attributed the improved outlook to recent government reforms. “The recent tax laws, executive orders and other business-related policies (Nigeria Industrial Policy and ‘Nigeria First’ Policy) cast a more positive outlook on manufacturing executives,” Ajayi-Kadir said.Despite the improved confidence, he said manufacturers continued to grapple with limited access to finance, unreliable electricity supply, high production costs, inadequate foreign exchange, weak patronage of locally made products and multiple taxation.Ajayi-Kadir noted that manufacturing chief executives expressed dissatisfaction with the high cost and limited availability of bank credit, blaming the situation on the CBN’s monetary policy.“Manufacturers’ CEOs expressed dissatisfaction with the cost and size of credit from commercial banks to the manufacturing sector. They bemoaned high interest rates on bank loans, which they directly blamed on the CBN’s high Monetary Policy Rate. With the MPR at 26.5 per cent, commercial banks generate spreads by charging manufacturers higher loan rates,” he said.Related NewsFG unveils renewable energy programme for one million MSMEsNigeria, Canada sign pact for direct flights, trade boostFG moves to ban fuel price-fixing, market collusionHe added that manufacturers had yet to experience significant gains from improved infrastructure and remained dissatisfied with access to foreign exchange despite the country’s exchange rate liberalisation.“Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” Despite the improved confidence, he said manufacturers continued to grapple with limited access to finance, unreliable electricity supply, high production costs, inadequate foreign exchange, weak patronage of locally made products and multiple taxation.Ajayi-Kadir noted that manufacturing chief executives expressed dissatisfaction with the high cost and limited availability of bank credit, blaming the situation on the CBN’s monetary policy.“Manufacturers’ CEOs expressed dissatisfaction with the cost and size of credit from commercial banks to the manufacturing sector. They bemoaned high interest rates on bank loans, which they directly blamed on the CBN’s high Monetary Policy Rate. With the MPR at 26.5 per cent, commercial banks generate spreads by charging manufacturers higher loan rates,” he said.Related NewsFG unveils renewable energy programme for one million MSMEsNigeria, Canada sign pact for direct flights, trade boostFG moves to ban fuel price-fixing, market collusionHe added that manufacturers had yet to experience significant gains from improved infrastructure and remained dissatisfied with access to foreign exchange despite the country’s exchange rate liberalisation.“Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” Ajayi-Kadir noted that manufacturing chief executives expressed dissatisfaction with the high cost and limited availability of bank credit, blaming the situation on the CBN’s monetary policy.“Manufacturers’ CEOs expressed dissatisfaction with the cost and size of credit from commercial banks to the manufacturing sector. They bemoaned high interest rates on bank loans, which they directly blamed on the CBN’s high Monetary Policy Rate. With the MPR at 26.5 per cent, commercial banks generate spreads by charging manufacturers higher loan rates,” he said.Related NewsFG unveils renewable energy programme for one million MSMEsNigeria, Canada sign pact for direct flights, trade boostFG moves to ban fuel price-fixing, market collusionHe added that manufacturers had yet to experience significant gains from improved infrastructure and remained dissatisfied with access to foreign exchange despite the country’s exchange rate liberalisation.“Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” “Manufacturers’ CEOs expressed dissatisfaction with the cost and size of credit from commercial banks to the manufacturing sector. They bemoaned high interest rates on bank loans, which they directly blamed on the CBN’s high Monetary Policy Rate. With the MPR at 26.5 per cent, commercial banks generate spreads by charging manufacturers higher loan rates,” he said.Related NewsFG unveils renewable energy programme for one million MSMEsNigeria, Canada sign pact for direct flights, trade boostFG moves to ban fuel price-fixing, market collusionHe added that manufacturers had yet to experience significant gains from improved infrastructure and remained dissatisfied with access to foreign exchange despite the country’s exchange rate liberalisation.“Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” He added that manufacturers had yet to experience significant gains from improved infrastructure and remained dissatisfied with access to foreign exchange despite the country’s exchange rate liberalisation.“Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” “Manufacturers claimed not to have felt a significant impact from government infrastructure on their productivity. Similarly, manufacturers objected to improvements in foreign-exchange sourcing, which have left them producing below their potential,” Ajayi-Kadir said.He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” He also said uncertainty over implementing the Nigeria Tax Act 2025, overregulation and persistent port congestion continued to weigh on manufacturing operations, although local sourcing of raw materials had improved.Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” Ajayi-Kadir said government agencies had not done enough to boost patronage of locally manufactured goods.“However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” “However, patronage of Nigeria-made products by MDAs has not been incentivised. This has prevented inventories of manufactured products from falling noticeably. It is recommended that CBN reduce MPR to below 20 per cent to unlock manufacturing growth. There should also be priority in forex allocation for manufacturers, as MDAs are mandated to ensure that at least 80 per cent of their procurement is made up of Made-in-Nigeria products,” he said.The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” The MCCI report showed that two out of every three manufacturing chief executives identified commercial bank lending rates as a major constraint to productivity, while many also described available credit as inadequate.The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” The report stated, “Two in every three CEOs cited commercial bank lending rates as a disincentive to manufacturing productivity. The size of bank credit to manufacturers was also described as insufficient.”It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” It added that about half of manufacturers disagreed that access to foreign exchange had improved despite the government’s flexible exchange rate policy.The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” The report further stated that only 27 per cent of manufacturing executives considered government infrastructure spending supportive of manufacturing activity.It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.” It added, “The current high-interest-rate regime was widely criticised by most CEOs for undermining manufacturing productivity. The interest rate is the cost of credit for manufacturers and directly influences production costs. Although the MPR was recently slashed to 26.5 per cent and maintained there, it remains one of the highest in Africa. Consequently, there was limited flow of finance from commercial banks to manufacturers. This calls for correction, recognising the manufacturing sector as a critical pillar towards achieving economic growth and employment generation.”