The Director-general of the Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi Kadir, has expressed concern that the recent increase in the exchange rate to 26.25 per cent by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) will worsen the already high cost of doing business in the country.
He stated this at a press conference in Lagos.
Ajayi Kadir said tightening and increasing loan costs would raise production expenses, limit fund accessibility, and reduce investment and competitiveness in the manufacturing sector.
He also noted that recent decisions by the Monetary Policy Committee (MPC) would further exacerbate the sector’s challenges.
The MAN Director-general said recent developments showed that the MPC seems to prioritize the financial sector over the real sector, rather than seeking a balanced approach.
According to him, this monetary stance will constrain investment and expansion, hindering manufacturers’ ability to invest in innovative technologies, expand production capacities, or explore new markets.
He said the combination of increased borrowing costs and reduced liquidity will further restrict manufacturers’ capabilities in these areas.
