MAN Seeks Reduction Of Interest Rate On Loans To 1%

The Manufacturers Association of Nigeria (MAN) on Tuesday appealed to the federal government to reduce the interest rate on loan obtained by industrialists to one per cent.

The outgoing chairman of MAN for Kwara and Kogi, Chief Biobaku Rahman made the call during the association’s 10th Annual General Meeting (AGM) held in Ilorin, Kwara State.

The AGM had, “Tackling the Challenges of the Manufacturing Sector: A Win-Win For Government and Local Manufacturers” as its theme.

Rahman lamented that the present interest rates are killing their businesses, urging 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 per cent,” he said.

He also urged the Bank of industry (BOI) to approve, and urgently roll out further reductions in its lending rates to industries, asking the CBN to also waive many conditions for its foreign exchange policies to local manufacturers.

Rahman while urging the CBN to widen the window of foreign exchange to local industries, charged the federal government to harmonise taxes and levies at federal, state and local government levels.

Reflecting on the effect of fuel subsidy removal on local manufacturers, he called on the government to urgently come to the association’s aid because “the bitter removal of subsidy in Nigeria has left manufacturers in unprecedented comatose.”

The Kwara State governor, AbdulRahman AbdulRazaq at the event pledged his administration’s continuous support for manufacturers in the state.

Represented by the Commissioner for Business, Innovation and Technology, Mrs Damilola Yusuf- Adelodun, the Governor promised to create conducive environment for the manufacturers in the state.