The Manufacturers Association of Nigeria (MAN) has proposed the creation of a Manufacturing Refinancing and Rediscounting Facility (MRRF) to rescue the industrial sector from high borrowing costs. The association is pushing for a system that allows commercial banks to refinance manufacturing loans at single-digit interest rates for up to seven years.
Director General of MAN, Segun Ajayi-Kadir, outlined this demand in a comprehensive 2026 outlook report. He argued that the current high interest rates are unsustainable for long-term industrial growth. To address this, he urged the Central Bank of Nigeria to reduce the benchmark interest rate by at least 200 to 300 basis points within the next six months to make credit more affordable for factory owners.
Beyond financing, MAN is calling for a major shift in how the government handles energy costs for industries. The association wants manufacturers to be categorized as “strategic users” of gas. This change would eliminate the price gap between what manufacturers pay and the lower rates currently enjoyed by electricity generation companies. Ajayi-Kadir also recommended a transparent gas pricing framework that prioritizes local industrial supply before gas is sent for export.
To ensure transparency in the financial sector, the association has proposed the launch of a public dashboard. This tool would track lending flows, interest rate spreads, and loan approvals in real time, showing exactly where money is being disbursed. Furthermore, MAN is seeking the immediate release of the ₦1 trillion stabilization fund for manufacturers and a significant increase in the capital base of the Bank of Industry.
The proposal also includes several administrative reforms to reduce the “red tape” facing businesses:
- Regulatory Coordination: The creation of a National Manufacturing Regulatory Coordination Desk to harmonize inspections and compliance across different government agencies.
- Tax Evaluation: The establishment of a dedicated unit under the Ministry of Finance to assess how new tax regimes impact manufacturing costs and small businesses.
- Patronage Incentives: Offering tax credits and awards to companies and consumers who prioritize locally manufactured goods over imports.
While the MAN Director General expressed optimism that 2026 will bring a stronger Naira and lower inflation, he warned that these improvements will only happen if the government moves from making promises to effectively executing these targeted support policies.
 has proposed the creation of a Manufacturing Refinancing and Rediscounting Facility (MRRF) to rescue the industrial sector from high borrowing costs.The association is pushing for a system that allows commercial banks to refinance manufacturing loans at single-digit interest rates for up to seven years.){kind=link}