The Manufacturers Association of Nigeria has welcomed the Central Bank of Nigeria’s decision to reduce the Monetary Policy Rate by 350 basis points to 23 per cent, saying the move could ease financial pressure on manufacturers and improve access to credit.
The CBN announced the rate reset after its 307th Monetary Policy Committee meeting held on September 21 and 22, 2026. The MPR was reduced from 26.5 per cent to 23 per cent, while the Cash Reserve Requirement for Deposit Money Banks was retained at 45 per cent.
In its position on the September MPC outcome, MAN Director-General Segun Ajayi-Kadir said the decision signals a move away from the tight monetary conditions that have placed pressure on manufacturing activity.
Manufacturers Expect Lower Borrowing Costs
MAN said the lower policy rate could reduce the cost of borrowing and improve manufacturers’ access to working capital, inventory financing and funds for investment.
The association said the rate reduction was a positive development for the real sector, particularly if the change is transmitted through the banking system into lower commercial lending rates.
The CBN’s latest decision also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR, while maintaining existing CRR requirements.
MAN Raises Concern Over 45% CRR
Despite welcoming the rate cut, MAN cautioned that its benefits could remain limited while banks continue to operate with a 45 per cent Cash Reserve Requirement.
The association called for a progressive review of the CRR to make more deposits available for lending to the real sector, while maintaining safeguards for financial stability.
MAN’s position reflects a broader concern among businesses that a lower benchmark rate will have limited practical effect if commercial lending rates remain high.
Call For Cheaper Credit
The manufacturers’ group also called for stronger coordination between monetary and fiscal authorities and urged the introduction of single-digit concessionary financing for manufacturers.
It further asked the banking sector to ensure that the CBN’s rate reduction translates into lower lending costs for businesses.
Other organised private-sector groups have similarly called for cheaper credit following the CBN’s decision, with the transmission of the policy change into commercial lending rates emerging as a key issue.
For manufacturers, the expected benefit of the policy adjustment therefore depends not only on the new 23 per cent MPR but also on how quickly financing costs and access to credit respond.
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