The Manufacturers Association of Nigeria has urged the Central Bank of Nigeria to further reduce interest rates to ease the rising cost of borrowing, which continues to stifle production and erode competitiveness in the manufacturing sector.

In its reaction to the outcome of the Monetary Policy Committee meeting held on November 24 and 25, MAN stated on Wednesday that it acknowledged the MPC’s decision to retain the Monetary Policy Rate at 27 per cent but stressed that the current lending environment remains “punitive for manufacturers.”

Following its 303rd meeting on November 25, the MPC maintained the benchmark rate at 27 per cent, adjusted the Standing Facilities Corridor to +50/-450 basis points, retained the Cash Reserve Ratio at 45 per cent for commercial banks and 16 per cent for merchant banks, and kept the liquidity ratio at 30 per cent.

The MPC also expressed satisfaction with improving macroeconomic indicators, noting what they called a “continued slowdown in inflation” and the “accelerated pace of disinflation,” which stood at 16.05 per cent in October.

But MAN cautioned that the prevailing conditions in the real sector demand more decisive easing. In his statement, Director-General of MAN, Segun Ajayi-Kadir, said the association “appreciates the decision of the MPC to halt the increase in MPR” but insisted that manufacturers had expected “a further reduction in the rate to reduce the cost of borrowing.”

Ajayi-Kadir noted that despite the improvement recorded at the last meeting, manufacturers still contend with borrowing costs “ranging between 30 and 37 per cent,” describing the rates as “high, restrictive, and damaging to competitiveness.”

He said, “The rate hinders production and reduces the competitiveness of the sector. While the emphasis on exchange rate stability and improved forex liquidity is crucial, it is essential to reduce the cost of funds to encourage borrowing for expansion and investment.”

The Association warned that persistent high lending rates would continue to limit manufacturers’ access to affordable credit, particularly those in the small and medium industrial cadre.

MAN added that the challenge was compounded by structural bottlenecks such as poor infrastructure, high logistics costs, erratic electricity supply, soaring energy costs, and insecurity, which it said “cumulatively raise production costs and weaken competitiveness.”

MAN urged the CBN and policymakers to strengthen monetary–fiscal coordination and pursue reforms that unlock industrial potential to sustain stability and drive inclusive growth. MAN said the CBN should “strengthen handshake with the fiscal authority to promote reforms capable of unlocking the full potential of the manufacturing sector.”

MAN also highlighted a series of recommendations aimed at positioning the sector for productive growth. It advised the CBN to “adopt a downward review of the rate in subsequent MPC meetings to lessen the burden of high borrowing costs and incentivise long-term investments,” particularly in capital-intensive sub-sectors.

MAN further recommended that the apex bank introduce additional policy instruments to facilitate credit flow to the real sector while the Federal Government strengthens fiscal discipline and scales up investments in roads, electricity, and logistics to boost supply capacity.

On exchange rate management, MAN urged the government to work closely with the Central Bank to stabilise the naira and manage potential risks linked to capital flight arising from the new MPC corridor adjustment “that will push banks to lend more.”

It also called for complementary fiscal measures that support industrial development, promote structural reforms in agriculture, manufacturing, and energy, and address inflationary pressures. The body added that insecurity in agricultural and industrial zones must be urgently resolved to stabilise raw material supplies and food output, stressing that “a secure environment is critical to sustained industrial growth.”

While commending the MPC for measures aimed at strengthening liquidity and encouraging lending, MAN said the government must seize the moment to drive credit-led growth in productive sectors. The Association urged the CBN to “monitor and evaluate the impacts of previous MPC decisions on credit access to the real sector” to inform future policy decisions.

MAN concluded by reaffirming its appreciation of the CBN’s efforts to stabilise the economy but maintained that stronger coordination between fiscal and monetary authorities remains essential to ensure that the MPC’s decisions translate into real sector gains, sustained growth, and broader economic development.

Bullish trading resurfaced on the Nigerian Exchange Limited on Tuesday, breaking a bearish run that had entered its sixth day as of Monday.

At the close of trading, the All-Share Index and Market Capitalisation rose by 0.10 per cent to 143,763.13 and N91.44tn, respectively, resulting in a gain of N94.47bn for investors.

Analysts maintained that sustained profit-taking had continued to pressure the overall performance of the local bourse, leading to bearish trading. The positive turn in the market also coincided with the decision of the Monetary Policy Committee of the Central Bank of Nigeria to hold the benchmark rate at 27 per cent at the end of its last meeting of the year.

The MPC also retained the Cash Reserve Ratio at 45 per cent for commercial banks and 16 per cent for merchant banks, and the 75 per cent CRR on non-TSA public sector deposits. The Liquidity Ratio was retained at 30 per cent, while the Standing Facilities Corridor was adjusted to +50 / -450 basis points around the MPR

Meanwhile, market sentiment on the NGX turned positive, as 26 advancers outweighed 20 decliners, yielding a favourable 1.3x breadth ratio. The stocks of NCR, Ikeja Hotel, Prestige Assurance, Eunisel, and Sterling Financial Holding Company led the gainers, while Caverton, Union Dicon, Sunu Assurance, Lasaco, and Mansard topped the losers’ list.

Sectoral performance was mixed, with banking posting the strongest gain at 0.56 per cent, followed by consumer goods (0.01 per cent), while insurance declined by 0.84 per cent. The Oil & Gas, Industrial, and Commodity sectors remained flat.

Despite the uptick in the market, trading activity weakened across all metrics. Volume contracted by 18.62 per cent to 556.15 million shares, transaction values dropped 34.04 per cent to N18.71bn, and deal count fell 18.29 per cent to 19,500.

Analysts at Cowry Asset Management said the downturn in trading activity reflected diminished institutional engagement through reduced block trades and subdued retail participation amid ongoing risk-averse sentiment.

The new Nigerian Tax Act, which comes into effect on January 1, 2026, has been hailed as containing reforms capable of transforming the nation’s economy, promoting equity among the populace, improving the financial capabilities of low and medium class workers while substantially bridging Nigeria’s age-long infrastructural gap.

To enforce compliance and effective implementation, some guidelines, including penalties for flouting the laws, have been put in place. Some of the penalties have been outlined below.

Failure to register

N50,000 for the first month of default and N25,000 for each subsequent month Failure to file returns VAT Returns.

N100,000 in the first month in which the failure occurs and N50,000 for each subsequent month Failure to keep books.

For a company, N50,000

Failure to grant access for the deployment of technology

N1,000,000 for the first day of default and N10,000 for each subsequent day of default.

Failure to use fiscalisation system

N200,000 plus 100% of tax due and interest at the prevailing CBN rate per annum.

Failure to deduct tax

40% of the amount not deducted

Failure to make attribution

N100,000 penalty

Failure to remit tax deducted at source or self-account

For failure to remit tax deducted is to pay the amount deducted, collected or withheld but not remitted. And administrative penalty of 10% per annum, and the interest at the prevailing CBN monetary policy rate.

For self-account under this act is liable to pay the tax not self accounted for, an administrative penalty of 10% per annum of the amount not self accounted for, an interest at the prevailing CBN monetary policy rate.

A person convicted of any of the offenses under this section shall be liable to imprisonment up to three years or a fine of not less than the principal amount due plus penalty of not more than 50% of the sum or both.

Failure to attend to demands, request or notices

N100,000 in the first day of default and N10,000 for every subsequent day where the default continues.

Any one who does not provide requested tax information, documents or records within the required time will pay an administrative penalty of N200,000 for the first day of default and N10,000 for each subsequent day where the failure continues.

A person who fails to or refuses to comply with obligations to submit information relating to legal arrangement, notice, rules, regulations, guidelines or circulars issued by the services or any other relevant tax authority is liable to an administrative penalty of N1,000,000 for the first day of default, in addition to 10,000 for each subsequent day of failure, other administrative penalties may apply as stated in any related notice, rule, regulation, guideline or circular.