The Manufacturers Association of Nigeria has urged the Federal Government to approve the N1 trillion stabilisation fund for the manufacturing sector, describing it as a key measure to cushion the effects of high interest rates and rising production costs faced by local industries.
The Director-General of MAN, Segun Ajayi-Kadir, made the appeal in Lagos during a media briefing, where he confirmed the full disbursement of the N75 billion previously allocated to manufacturers under the Federal Government’s Presidential Palliative Programme.
According to him, the successful implementation of the earlier intervention has shown that manufacturers can responsibly manage government-backed funding. He said, “We fully utilised the opportunities granted by the memorandum of understanding with the government. I can confirm to you that the N75bn has been fully disbursed, and our members were involved in the process. Even when we had cases where the beneficiaries’ status was unclear, we investigated with the Bank of Industry to ensure they were authentic contractors.”
Ajayi-Kadir added that the effective management of the fund by the sector demonstrates the capacity of manufacturers to handle larger interventions. He noted, “This has created an avenue for us to call for the release of the N1tn under the stabilisation plan. We have demonstrated our capacity to work effectively with the Bank of Industry, and if the government releases this fund, its impact will be positive and immediate.”
The MAN Director-General highlighted findings from the association’s Manufacturers CEOs Confidence Index for the third quarter of 2025, which called on the government to “approve the N1tn stabilisation fund for manufacturers and direct the CBN to increase the capital base of the Bank of Industry to meet the credit demand of industries.”
He lamented that despite recent monetary policy adjustments, interest rates remain too high for manufacturers to access affordable credit. “The average entry rate is still above 30 per cent. It is safer not to borrow from commercial banks, and many of our members are cutting back on loans because of the interest burden,” he stated.
Ajayi-Kadir said the association was exploring the capital market and other financing sources but warned that high lending rates continue to weaken industrial competitiveness both locally and internationally.
As part of its recommendations, MAN called on the government to establish a Manufacturing Refinancing and Rediscounting Facility that would allow commercial banks to refinance approved manufacturing loans at single-digit interest rates for up to seven years.
The association also urged the creation of a publicly accessible dashboard to monitor lending flows, interest rate spreads, loan approvals, and sectoral disbursements in real time.
Ajayi-Kadir emphasized that these proposals aim to reduce borrowing costs, enhance production, and sustain jobs within the manufacturing industry, which remains a major driver of Nigeria’s economic growth and industrial development.
