The Manufacturers Association of Nigeria, MAN, has cried out that the continuous adoption of tight monetary policy by the Central Bank of Nigeria, CBN, is worsening the competitiveness of Nigerian products in the global market.
Director General of MAN, Segun Ajayi-Kadir, raised the alarm in reaction to the decision of the Monetary Policy Committee (MPC) of CBN to raise the Monetary Policy Rate (MPR) by 200 basis points to 24.75 percent from 22.75 percent at its 294th meeting held on the 25th and 26th of March 2024.
Ajayi-Kadir lamented that over the last 5 years, the manufacturing export value of Nigeria has declined by 166 percent to N778.44 billion in 2023 from N2.07 trillion in 2019.
He added that the exorbitant lending rate has also resulted into a 57.6 percent drop in the share of manufacturing export to non-oil export to 24.8 percent in 2023 from 82.4 percent in 2019.
He said while MAN recognizes that the MPC decision is aimed at addressing the economic challenges facing the country particularly the instability in inflation and exchange rates, it is essential for the committee to carefully consider the potential impact of the decisions on manufacturing.
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