To facilitate loans at single-digit rates
By Yinka Kolawole
In a bid to reinvigorate the manufacturing sector in 2026, the Manufacturers Association of Nigeria (MAN) has called for the introduction of a Manufacturing Refinancing and Rediscounting Facility (MRRF).
Director General of MAN, Segun Ajayi-Kadir, made the case for the facility in a report on the manufacturing outlook for 2026.
He said the MRRF is to enable banks to refinance approved manufacturing loans at single-digit rates for up to seven years.
According to him, key actionable recommendations to ensure a more robust manufacturing sector in 2026 include:
“Further reduce the benchmark interest rate by at least 200–300 basis points over the next two quarters to make credit affordable for manufacturers.
“Launch a Manufacturing Refinancing and Rediscounting Facility (MRRF) that allows banks to refinance approved manufacturing loans at single-digit rates for up to 7 years.
“Create a publicly accessible dashboard tracking lending flows, interest rate spreads, loan approvals and sectoral disbursement patterns in real time.
“Craft and ensure the effective execution of the implementation strategy for the recently approved Nigeria Industrial Policy.
“Categorize manufacturers as strategic users of gas to remove the gap between what manufacturers and electricity generation companies pay per cubic foot of gas.
“Introduce a stable, transparent gas pricing framework for manufacturers and prioritize local gas supply before exports.
“Offer tax credits and recognition awards to companies and consumers patronizing locally manufactured goods.
“Establish a tax policy implementation and evaluation unit under the Federal Ministry of Finance to regularly assess how the new tax regime affects investment, manufacturing costs and MSME performance.”
The MAN DG also advocated a publicly accessible dashboard tracking lending flows, interest rate spreads, loan approval and sectoral disbursement patterns in real time.
“The government must create a National Manufacturing Regulatory Coordination Desk (NMRCD) under the Federal Ministry of Industry, Trade and Investment to harmonise approvals, inspections and compliance processes for manufacturers across key agencies.
“We also call for the approval of the N1 trillion 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,” Ajayi-Kadir added.
Overall, the MAN DG hinged the sector’s performance in 2026 on expectations of a stronger naira, easing inflation and lower interest rates.
He, however, stressed that the gains would depend largely on effective policy execution and targeted government support.
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