Nigeria’s manufacturing sector has warned that persistently high interest rates and inadequate public infrastructure are significantly constraining industrial growth, forcing companies to shoulder huge operating costs that continue to erode productivity and limit capacity utilisation.
The Manufacturers Association of Nigeria (MAN) said manufacturers are increasingly burdened by the need to provide their own electricity, transportation, logistics, security and even foreign exchange, leaving many firms struggling to remain competitive.
According to the association’s Second Quarter (Q2) 2026 Manufacturers CEOs Confidence Index (MCCI), manufacturing executives identified the country’s high-interest-rate environment as the most critical challenge confronting the sector, with many businesses unable to access affordable credit needed for expansion and day-to-day operations.
Director-general of MAN, Segun Ajayi-Kadir, said the Central Bank of Nigeria’s tight monetary policy had made borrowing prohibitively expensive for manufacturers.
“Interest rates remain the highest cost of credit and directly influence production costs across the sector. As the CBN embarked on interest rate hikes to curb inflationary pressures, the manufacturing sector felt the heat,” he said.
