Reduce interest rate to 1%, manufacturers beg FG

The Manufacturers Association of Nigeria (MAN) is uncomfortable with the present interest rate on loans for its members and needs a further reduction to one percent, an official has said.

Chief Bioku Rahman, the outgoing Chairman of MAN in Kwara and Kogi, disclosed this in Ilorin on Tuesday while speaking during the Association’s 10th Annual General Meeting (AGM).

Supreme News reports that the meeting’s theme is “Tackling the Challenges of the Manufacturing Sector: A Win-Win for Government and Local Manufacturers.”.

“The present interest rates are killing businesses.

“We therefore ask the Federal Government to urgently direct the Central Bank of Nigeria (CBN) to drastically reduce interest rates on industrial loans.

“The CBN should as well direct commercial banks to reduce interest rates on industrial loans.

“The interest rates charged on industrial loans and other loans released as COVID-19 palliatives should be significantly reduced further to one percent,” Rahman said.

He also urged the Bank of Industry (BOI) to approve and urgently roll out further reductions in its lending rates to industries.

”We are asking the CBN to wave many conditions for its foreign exchange policies to local manufacturers.

“Similarly, CBN can widen the window of foreign exchange to local industries while urging the Federal Government to harmonise taxes and levies at federal, state, and local government levels.”

Rahman noted that a heavy-duty gas-energy generation and distribution plant was exclusively needed for Kwara industrialists.

Speaking also, Mrs. Damilola Adelodun, the state’s Commissioner for Business, Innovation, and Technology, pledged the state government’s continued support for the association to boost the state’s economy.

Adelodun, who represented Gov. Abdul Rahman AbdulRazaq of Kwara, reiterated the government's resolve to create a conducive environment for the manufacturers in the state.

“The state has undertaken several key initiatives to support the manufacturing sector and overall economic development.

“The Urban Renewal Initiative is transforming the architectural landscape of Kwara to enhance its aesthetic appeal and functionality, making it a more attractive place for businesses and residents,” she said.

In his address, the President, Manufacturers Association of Nigeria (MAN), Chief Francis Meshioye, described the relationship between the state government and MAN as cordial.

He appealed to the state government for infrastructure around the industrial estates to be upgraded.