The Manufacturers Association of Nigeria (MAN) has urged the nation’s apex bank, Central Bank of Nigeria (CBN) to drop the lending rate from 14 per cent to a much lower rate to accelerate productivity and economic growth.
MAN stressed that if the CBN hearkens to its calls for the reduction in the loan rate it gives manufacturers in the country, it would help to boost the nation’s economy.
CBN had maintained a 14 per cent lending rate to commercial banks last July in its bid to check inflation and stimulate economic growth.
MAN President, Frank Jacobs, made the appeal in an interview with newsmen on Sunday in Lagos.
Jacobs urged the apex bank’s Monetary Policy Committee to review the lending rate downward at its next meeting slated for this month.
According to him, the high interest rate regime had stifled growth, productivity and competitiveness of manufacturers.
Jacobs noted that with the appreciation of the naira and further drop in inflation rate, friendlier policies that would stimulate economic growth and boost production should be embraced.
He urged CBN to create five per cent concessionary interest rate for manufacturers to drive the nation’s diversification agenda and increase contribution to the Gross Domestic Product.
“If manufacturers have access to low interest rate as done in other climes, we will be able to employ more people and create wealth for the nation through tax,” he said.
Jacobs said that with concessionary interest rate, manufacturers would be able to expand their businesses, create wealth, boost productivity and catalyse economic transformation.
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