The association made this known through a press statement signed by the Director General, Segun Ajayi-Kadir, mni on Wednesday.

Stating that there are Yet, more cuts needed to achieve meaningful impact, the DG expressed that Nevertheless, lower interest rates alone cannot resolve the structural constraints that continue to raise production costs.

“Therefore, MAN advocates for stronger coordination between monetary and fiscal authorities to ensure that monetary policy easing is complemented by targeted fiscal and structural interventions. Such coordination is necessary to translate the reduction in the policy rate into lower lending costs, improved access to credit, increased productive investment, an improved operating environment, and stronger industrial growth.”

The DG ascertained that While the revised Standing Facilities Corridor of +50/-300 basis points provides a more moderate framework around the policy rate, it would improve liquidity management within the banking system and support more efficient pricing of short-term funds.

But, retaining the CRR at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks means a substantial proportion of banks' deposits will continue to be held as reserves and the relatively high CRR may continue to constrain the proportion of deposits available for lending to productive sectors.

THE DG further explained that obviously, improved liquidity conditions could increase credit availability and strengthen businesses' ability to meet short-term financing needs but the benefits of the MPR reduction may not be fully realised if credit expansion to the real sector remains constrained because of the high CRR rate that reduces the available funds for lending or investment amongst other factors.

In response, MAN therefore recommended policy measures for the government's consideration to support sustainable economic growth and industrial development such as; Expanding access to concessionary, single-digit financing for manufacturers, particularly SMIs and businesses operating in strategic sectors;

Progressively reviewing the high CRR for Deposit Money Banks, where prevailing macroeconomic conditions permit, to create greater lending capacity for productive sectors while safeguarding financial-system stability;

Partnering with deposit money banks (DMBs) and the Bankers' Committee to ensure that the 350 bps MPR reduction translates directly into lower prime and maximum commercial lending rates for local manufacturers;

Intensifying efforts to address structural production constraints, particularly electricity costs, transport and logistics expenses, infrastructure deficits and insecurity, which continue to increase the cost of manufacturing;

Strengthening interventions aimed at reducing industrial energy costs through improved electricity supply, greater domestic gas utilisation and incentives for alternative and renewable energy solutions for industrial users.

Accelerating the implementation of the Nigeria First Policy to strengthen domestic value chains, promote local sourcing of raw materials, reduce import dependence and create stronger demand for locally manufactured goods;

Ensuring the full and effective implementation of the recent Memorandum of Understanding between the Ministry of Finance and the Central Bank of Nigeria; Utilizing the growing external reserves buffer to create a dedicated, transparent FX window for legitimate manufacturers importing capital equipment and necessary raw materials that are not locally available, and minimize dependency on parallel market premiums;

Strengthening the Nigerian Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL) and similar credit guarantee funds to cover industrial SME risks, giving banks confidence to lend without demanding exorbitant collateral requirements;

Re-energizing structured, low-interest intervention windows via the Bank of Industry (BOI) and Development Bank of Nigeria (DBN), providing single-digit or low double-digit long-term loans targeted strictly at raw material processing, machinery imports, and local equipment fabrication;

Operationalising the N1 trillion Manufacturing Stabilisation Fund at a 9 per cent interest rate, through the Bank of Industry (BOI) with transparent eligibility criteria, efficient administration, and timely disbursement to qualified manufacturers;

Facilitating access to development finance for manufacturing SMEs at a 5 per cent interest rate, supported by appropriate tenors and repayment structures that reflect the production and investment cycles of manufacturing enterprises; as well as

Ensuring that future MPC meetings are heavily focused on the outcome of an impact assessment of the MPR on the manufacturing and productive sectors.

It is noteworthy that the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 307th meeting on September 21- 22, 2026, to review the prevailing domestic and global economic conditions and determine the appropriate monetary policy direction. At the end of the meeting, members of the committee agreed and adjusted the monetary policy parameters as;

To Cut Monetary Policy Rate (MPR) by 350 basis points to 23.0 % from 26.50%; Adjust the Standing Facilities Corridor (SFC) to +50 / -300 basis points around the MPR; Retain Cash Reserve Ratio (CRR) at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks; Retain the Liquidity Ratio at 30 per cent

In addition, the 50-basis-point reduction in the MPR represents a significant easing of the monetary policy stance. The adjustment is expected to lower the borrowing cost and improve the operating environment for businesses, particularly manufacturers whose activities depend heavily on working capital and investment financing.