The Manufacturers Association of Nigeria (MAN) has expressed grave concerns over a staggering N1.92 trillion credit contraction in the manufacturing sector, warning that such a decline threatens the viability of industrial policies aimed at reviving the economy. Manufacturers are currently facing exorbitant borrowing rates, ranging from 27% to 35%, which exacerbates operational challenges and stifles growth potential.
Dike Onwuamaeze, the association's president, stated, "The current interest rates are crippling our ability to invest and expand, ultimately derailing the progress of our industrial policy." This alarming trend not only hinders the competitiveness of Nigerian manufacturers but also poses risks to job creation and economic stability.
As the government grapples with these pressing challenges, it must prioritize measures to enhance access to affordable credit for manufacturers. Moving forward, a collaborative approach involving policy reforms, financial incentives, and stakeholder engagement will be crucial to revitalize the sector. Without decisive action, the manufacturing landscape may face further deterioration, undermining broader economic objectives and leaving the nation vulnerable to external shocks.
