Manufacturers ask FG to reduce interest rate to 1% to combat inflation

Manufacturers Association of Nigeria is uncomfortable with the present interest rate on loans for its members and needs a further reduction of one per cent, an official says. MAN outgoing Chairman Bioku Rahman in Kwara and Kogi said this in Ilorin while speaking during the association’s 10th annual AGM. “The present interest rates are killing businesses. We therefore ask the federal government to urgently direct the Central Bank of Nigeria to drastically reduce interest rates on industrial loans. The CBN should as well direct commercial banks to reduce interest rates on industrial loans. “The interest rates charged on industrial loans and other loans released as COVID-19 palliatives should be significantly reduced further to one per cent,” Mr Rahman said. 

He also urged the Bank of Industry to approve and urgently roll out further reductions in industry lending rates. “We are asking the CBN to wave many conditions for its foreign exchange policies to local manufacturers,” Mr Rahman stressed. “Similarly, CBN can widen the window of foreign exchange to local industries while urging the federal government to harmonise taxes and levies at federal, state and local government levels.” Mr Rahman noted that a Heavy-Duty Gas-Energy Generation and Distribution Plant was exclusively needed for Kwara industrialists.

Damilola Adelodun, Kwara’s commissioner for business, innovation and technology, pledged the state government’s continued support for the association to bolster the nation’s economy. Ms Adelodun, who represented Governor AbdulRahman AbdulRazaq of Kwara, reiterated the government’s resolve to create a conducive environment for the manufacturers in Kwara.

“The state has undertaken several key initiatives to support the manufacturing sector and overall economic development. The Urban Renewal Initiative is transforming the architectural landscape of Kwara to enhance its aesthetic appeal and functionality, making it a more attractive place for businesses and residents,” she said. MAN’s president, Francis Meshioye, appealed to the Kwara government to upgrade infrastructure around the industrial estates. NAN