MPR cut should bring cheaper credit — MAN

The Manufacturers Association of Nigeria (MAN) has called on banks to reduce lending rates to manufacturers following the Central Bank of Nigeria's 350-basis-point cut in the Monetary Policy Rate. MAN's Director-General, Segun Ajayi-Kadir, said lower borrowing costs are essential to reviving investment and production. He noted that the rate reduction marks a gradual shift from tight monetary conditions that had constrained manufacturing activities. However, he warned that the impact could be limited by the high Cash Reserve Ratio, which stands at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks.

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