The Manufacturers Association of Nigeria (MAN) has decried the recent increase in the Monetary Policy Rate (MPR) by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) stating that it doesn’t favour Nigerians.
CBN increased the interest rate of MPR by 150 basis points to 13 percent in May and again to 14 percent in June.
MAN posited that the new interest rate make it even more difficult for CBN to achieve a single rate but also make goods in the country very expensive among other negative consequences.
In a statement issued by MAN, which is titled: “The preliminary position of MAN on the July 19, 2022 decision of the Monetary Policy Committee of the central bank of Nigeria,” the group said this recent development was another level of increase in interest rates on loanable funds.
It noted that it would upscale the intensity of the crowding-out effect on the private sector businesses as firms had lesser access to funds in the credit market.
The statement added that it would “intensify demand crunch emanating from the heavily eroded disposable income of Nigerians, constraining access of households and individuals to cheap funds.”