MAN: Balancing Nigeria's real interest rate imperative

The Manufacturers Association of Nigeria has raised concerns about the need for a mechanism to holistically balance the real interest rate in line with local aspirations. Segun Ajayi-Kadiri, the Director General of the association, joined CNBC Africa to discuss the pressing issue. Ajayi-Kadiri highlighted the importance of maintaining single-digit interest rates to stimulate production across all scales of manufacturing in Nigeria. He emphasized that the recent policy tightening measures are exacerbating the challenges faced by the sector, including issues such as fiscal policies, forex management, high taxes, and insecurity. The association believes that the current climate of escalating costs is putting Nigerian manufacturers at a severe disadvantage, affecting their competitiveness both locally and within the African continental free trade area. Ajayi-Kadiri stressed the critical role of the manufacturing sector in driving economic growth and job creation, calling for a budget that prioritizes support for productive industries. He underscored the need to reduce dependence on imports and create an enabling environment for local manufacturers to thrive. The association urged the government to avoid burdening the sector with excessive taxes and levies, emphasizing the importance of facilitating access to raw materials and fostering a conducive business environment for sustainable growth.