The Manufacturers Association of Nigeria (MAN) has disclosed that the rising inflation rate for January alongside perennially high-interest rates and scarce/high rate of forex has compounded the downturn of the manufacturing sector in Nigeria.
This was revealed by Mr Segun Ajayi-Kadir, Director-General, MAN, in an interview with NAN on Tuesday in Lagos.
“The manufacturing sector has been struggling, particularly in the past four quarters, from the combined effect of COVID-19, deteriorating infrastructure, high regulatory compliance cost and tax obligations.
So, rising and high inflation, perennially high-interest rates and scarce/high rate of forex has compounded the downturn in the sector in terms of the envisaged recovery.
Government should assist manufacturing productivity with credit at competitive price.
This could be in the form of concessions and enhancing existing special credit windows or creating additional ones for this important sector of Nigerian economy,” he said.