Breaking News Nigeria Interest Rate Skyrockets to 27.25%

The Manufacturers Association of Nigeria (MAN) has reacted to the recent increase in the Monetary Policy Rate (MPR) to 27.25 percent, warning of the dire consequences this decision will have on the nation's manufacturing sector.

In a statement released on Thursday, Segun Ajayi-Kadir, the Director General of MAN, expressed concerns about the far-reaching impact of this decision on the manufacturing sector. Ajayi-Kadir stressed that this increase will lead to higher production costs, reduced competitiveness, and decreased output, ultimately affecting the performance of the sector.

The Director General explained that the manufacturing sector is still struggling to recover from the effects of the COVID-19 pandemic, and this new development will further exacerbate the challenges faced by manufacturers. He also emphasized that the current economic conditions in the country demand policies that support the growth and development of the manufacturing sector, rather than hinder it.

Ajayi-Kadir pointed out that the increase in interest rates will lead to higher borrowing costs for manufacturers, making it even more difficult for them to access the necessary funds to finance their operations. He warned that if this trend continues, many manufacturing businesses may be forced to shut down, resulting in job losses and reduced economic activity.

The MAN Director General urged the government to reconsider its decision and implement policies that will stimulate the growth of the manufacturing sector. He suggested that the government should focus on creating a more conducive business environment, improving infrastructure, and providing support to manufacturers to help them overcome the challenges they are facing.

The statement comes at a time when the Nigerian economy is facing significant challenges, including high inflation, a weak exchange rate, and low economic growth. The government's decision to increase interest rates has been met with mixed reactions, with some experts arguing that it is necessary to curb inflation, while others believe that it will have negative effects on the economy.

Ajayi-Kadir's statement highlights the need for policymakers to consider the impact of their decisions on the manufacturing sector and the broader economy. The government must strike a balance between controlling inflation and supporting economic growth, and it is essential to engage with stakeholders to find solutions that benefit all parties involved.