By Salako Tijani
Manufacturers Association of Nigeria (MAN), Ogun State Chapter, has called on the Central Bank of Nigeria (CBN) to intensify efforts at reducing interest rates for manufacturers to boost the sector.
The MAN Chairman, Mr. Wale Adegbite, made the call in a chat with the Nigerian News Direct recently at Ota, Ogun.
Adegbite was reacting to the retention of the Monetary Policy Rate (MPR) at 14 per cent by the Monetary Policy Committee.
News Direct reports that the monetary policy committee had after a two-day meeting, retained the MPR at 14 per cent, Cash Reserve Ratio at 22.5 per cent and Liquidity Ratio at 30 per cent
News Direct also reports that the monetary policy rate had been retained since July 2016 in a bid to reduce inflation and to stimulate economic growth in the country.
According to Adegbite, the major issues the manufacturers are battling with in terms of monetary policy are the exchange and interest rates.
He said that availability of dollar had reduced the exchange rate at the official market rate of N325 to a dollar describing it as an improvement.
He explained further that the manufacturers also needed improvement in the interest rate as most medium scale companies are paying 25 per cent and above as interest rate.
“This development is not good for the economy because it will be difficult to engage in investment when interest rate is high,” he said.
Adegbite said that retaining the monetary policy rate at 14 per cent would not help the manufacturers who are seeking reduction in the rate.