The Manufacturers Association of Nigeria (MAN) on Monday said retaining the Monitory Policy Rate (MPR) at 14 per cent by the apex bank would negate growth of manufacturing sector.
President of MAN, Frank Jacobs, told newsmen in Lagos that the 14 per cent MPR would not boost domestic production.
The MAN president also said that maintaining the present rate would prevent the manufacturing sector from coping with the current recession.
The Central Bank Governor, Godwin Emefiele, had announced MPC decision to retain the MPR at 14 per cent at the end of its two-day meeting last week.
Apart from retaining the MPR at 14 per cent, the CBN governor said the committee also voted to retain the Cash Reserves Ratio at 22.5 per cent.
“We had taught that reducing the rates will enable banks to reduce percentage of getting loans to inject into the manufacturing sector to reflate the economy.
“However, with the present circumstance, many domestic producers will be struggling to keep their businesses as a going concern and will not make profits.
“As a result of the recession, most manufacturers will want to shed down workers, which will have negative social implication for the country,” he said.
The MAN president urged the apex bank to reduce the interest rates in its next monitory policy meeting to ensure growth in the manufacturing sector.
“It is only when rates are brought down that the manufacturers will be able to sustain and expand their businesses, even during recession,” he said.
Jacob said that with appropriate incentives, the manufacturing sector could cause an economic turnaround for the
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