The Manufacturers Association of Nigeria (MAN) said the performance of the manufacturing sector has been constrained by the  Nigerian inclement macroeconomic environment. The Association noted that with the triadic rates: high and rising inflation rate, double digit lending rate and unfavourable exchange rate parity. The Director General, Segun Ajayi-Kadir mni stressed that the regulatory environment is harsh and induces high business operating cost in the economy. There is also infrastructure deficit which our businesses contend with.

The MAN DG Stated this in press statement titled Comment of MAN On CBN Intervention Fund For Manufacturers And Naira 4 Dollar Scheme that as a result of the high cost business environment, the manufacturing sector has persistently suffered low-price competitiveness as plethora of close substitute to Nigerian manufactured products are officially imported into the country while some others are smuggled in through the land borders.

He said in order to assuage the high cost manufacturing environment and improve the competitiveness of Nigerian manufactured products, funding at liberal lending rate (single digit) became critical.  According to him, this explains why the Central Bank of Nigeria (CBN) created several development funding windows with “single digit” interest rates to support real productive businesses including manufacturing.

“However, notwithstanding the availability of these funding windows, manufacturers still suffer the dual challenges of scarcity of investible funds and high lending rate.

Ajayi-Kadir pointed out that the N1Trillion COVID-19 Stimulus for Manufacturing and Import    Substitution, 2020, a stimulus that was aimed at sustaining the manufacturing and improving output of the sector has not been accessible.

He said MAN observed through feedbacks from members and interaction with the CBN on several occasions that these facilities and funds have not been adequately accessible to manufacturers due mainly to the prevarication of the PFIs and MDBs.

MAN, while acknowledging the excellent initiative of the CBN in setting up the N1 trillion COVID-19 stimulus facilities for manufacturing and import substitution, observed    that most of its members who applied were not able to get it, said DG MAN.  According to the CBN, he said only 76 companies have received N300 billion, which translates to 30%, in one year. Intriguingly, according to our members, the banks are claiming that they have not received the framework for the administration of the facility from the CBN.

“As the umbrella organization of manufacturers in Nigeria, MAN hereby indicates its interest and solicits CBN’s consideration to be part of the monitoring proces