The Manufacturers Association of Nigeria have called for interest rates on loans to reduce to between 3 and 5% per annum. According to an article in The Nation, the MAN President Dr. Frank Udemba Jacobs, who spoke during the week on the sideline of the association’s Council in Lagos, said:
“One of the challenges we have is funding.We are concerned with the high interest rate that banks charge manufacturers. Government is serious about diversification but they cannot diversify at this current rate. We hope the government will reduce the rate to three to five percent.”
Maximum Lending rate in Nigeria is currently between 24% to 28% and is likely to increase further following the latest announcement that inflation rate was now 12.8%. Asking for 3-5% interest rate therefore seems highly unrealistic and perhaps suggest he may have been misquoted. However, with the recent antecedents of the President one may not be surprised if this request is indeed authentic. Currently, the CBN through the Bank of Industry gives out loans at single digit to small businesses and select manufacturing businesses.