The Manufacturing Association of Nigeria (MAN) has requested support from the country’s government to the tune of N1 trillion ($696 million) to aid in lowering production costs and cushioning high interest rates.
This request was put forth by the group’s director-general, Segun Ajayi-Kadir, at the media briefing confirming the full disbursement of the N75 billion ($52 million) the government had disbursed to MAN earlier.
The N75 billion fund had been allocated to manufacturers under the Federal Government’s Presidential Palliative Programme.
In its Manufacturers CEOs Confidence Index for the third quarter of 2025, the head of the group emphasized that the government must “approve the N1tn stabilisation fund for manufacturers and direct the CBN to increase the capital base of the Bank of Industry to meet the credit demand of industries.”
He also stated that MAN “fully utilised the opportunities granted by the memorandum of understanding with the government,” the Punch reported.
I can confirm to you that the N75 billion has been fully disbursed, and our members were involved in the process. Even when we had cases where the beneficiaries’ status was unclear, we investigated with the Bank of Industry to ensure they were authentic contractors.”
Latest success for Nigerian manufacturers
According to the latest Business Confidence Monitor provided by the Nigerian Economic Summit Group and Stanbic IBTC Bank, as earlier reported, Nigeria’s manufacturing sector was the standout performer in October 2025, with the fastest growth rate of any economic sector.
The manufacturing sector’s Business Confidence Index increased by 8.8 points to 111.3 in October 2025, the largest monthly rise among all sectors and a spectacular 45-point leap from 71.3 in October 2024.
The October 2025 NESG-Stanbic IBTC Business Confidence Monitor revealed that, while the overall Current Business Performance Index increased to 111.3 points from 107.9 in September 2025, the manufacturing sector’s contribution was very noteworthy.
Manufacturing’s monthly growth of 8.8 points surpassed all other sectors, including trade (up 7.8 points to 115.4), non-manufacturing (115.0), agriculture (111.4), and services (111.0).
Need for more funding for Nigerian manufacturers
MAN’s Third Quarter 2025 Manufacturers CEO’s Confidence Index (MCCI) showed that credits to the industry decreased by 9.5%, from ₦8.53 trillion in December 2024 to ₦7.72 trillion in March 2025, as reported last week.
This was owing to high interest rates, ongoing energy bills, and foreign exchange shortages.
MAN’s Director General had also at the time raised the issue of high lending rates, stating, “High lending rates averaging 36.6%, declining credit access, and rising unsold inventories of ₦1.04 trillion continue to limit manufacturing performance.”
He also added, “Our data show that the manufacturing sector is beginning to find its footing after a long period of turbulence. However, this recovery is fragile and could easily falter if deliberate, industry-friendly interventions are not implemented.”
During the recent media briefing, Ajayi-Kadir emphasized that excessive borrowing rates continue to threaten competitiveness both domestically and globally, even if the association was looking into alternative funding possibilities, including the stock market.
“The average entry rate is still above 30 per cent. It is safer not to borrow from commercial banks, and many of our members are cutting back on loans because of the interest burden.”
He went on to justify the request for N1 trillion, citing the management of the N75 billion fund as proof that Nigerian manufacturers can deal with government interventions in a responsible way.
“This has created an avenue for us to call for the release of the N1tn under the stabilisation plan. We have demonstrated our capacity to work effectively with the Bank of Industry, and if the government releases this fund, its impact will be positive and immediate,” he stated.
To monitor lending flows, interest rate spreads, loan approvals, and sectoral disbursements in real time, the organization has suggested creating a dashboard that is open to the public.
The association’s recommendations, according to Ajayi-Kadir, were meant to lower borrowing costs, increase output, and maintain jobs in the manufacturing sector.
