Business

High Rates Hike Weakening domestic production- MAN

Published

2 years ago

September 26, 2024

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The Manufacturers Association of Nigeria (MAN) , said on Thursday that the continuous rise in interest rates by the Central Bank of Nigeria is weakening domestic production of finished goods.
MAN, therefore, called on the CBN to stop the rate hike and explore more of the monetary-fiscal policy handshake options to curb inflation.

This was the MAN reaction to the September increase in the Monetary Policy Rate (MPR) by 50 basis points, from 26.75% to 27.25% by the apex bank.

Segun Ajayi-Kadir, the MAN Director-General, said that despite the manufacturers expectation for a rate hold or reduction, given that price increases had slowed for the second consecutive month in August to an annual rate of 32.2%, the MPC opted for a tightening of monetary policy.

“The decision to raise the MPR to 27.25% has far-reaching implications for the manufacturing sector in Nigeria,” said Ajayi-Kadir.

Over the first six months of the year, manufacturers incurred more than ₦730 billion in capital expenses due to the continuous rise in interest rates imposed by commercial banks

He said: ” The continued increase in interest rates, which now totals 15.75 percentage points since May 2022, would compound the challenges faced by the sector, including rising production costs in the face of declining consumer purchasing power.

With the increase in borrowing costs, manufacturers will now pay over 35% on their credit facilities.

Clearly, this will lead to increase in production costs, higher prices of finished goods, lower competitiveness and production capacity expansion.

The impact of higher interest rates goes beyond compounding the challenges of manufacturers, it stifles opportunities for investment in crucial areas such as technology, retooling, and expansion within the manufacturing sector.
Manufacturers will, all the more, be compelled to choose servicing existing credit facilities over expansion and investment in new product lines.

For instance, over the first six months of the year, manufacturers incurred more than ₦730 billion in capital expenses due to the continuous rise in interest rates imposed by commercial banks.

This dilemma hampers innovation, productivity and growth.”

Business

NAICOM Revokes Nigeria Reinsurance’s Licence, Freezes Operations Over Capital Shortfall

Banire directed banks, financial institutions, policyholders and members of the public not to honour any instruction relating to the company except those issued by him or persons expressly authorised by him.

Published

2 days ago

August 6, 2026

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33 Views

The National Insurance Commission (NAICOM) has revoked the operating licence of Nigeria Reinsurance Corporation for failing to meet the statutory Minimum Capital Requirement (MCR) and appointed Senior Advocate of Nigeria, Dr. Muiz Banire, SAN, as Receiver/Provisional Liquidator to wind up the company’s affairs.

The appointment took effect on August 3, 2026, following the cancellation of the company’s certificate of registration by the insurance regulator.

In a public notice dated August 4, 2026, Banire said NAICOM appointed him, in exercise of its statutory powers, to oversee the receivership and liquidation of Nigeria Reinsurance Corporation (RR-002).

In the notice, the company’s licence was revoked after it failed to comply with the prescribed Minimum Capital Requirement applicable to its category of licence within the stipulated compliance period, in accordance with the Nigerian Insurance Industry Reform Act (NIIRA) 2025 and other extant laws, regulations and guidelines.

Banire said his appointment authorises him to immediately trace, recover, secure and take possession of the company’s assets, collate and settle its liabilities in line with the NIIRA 2025, liaise with NAICOM on matters relating to the liquidation, and submit periodic reports to the Commission.

Source: ThisDay

Business

NDIC begins paying depositors of 46 closed microfinance banks

NDIC Managing Director and Chief Executive Oludare Sunday confirmed the development at a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters in Lagos on Wednesday.

Published

3 days ago

August 6, 2026

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33 Views

The Nigeria Deposit Insurance Corporation (NDIC) has started reimbursing depositors affected by the closure of 46 microfinance banks nationwide.

” Payments are ongoing, and over 700,000 Heritage Bank customers have already received their insured funds through BVN-linked accounts.

“We have started paying depositors of those banks, and gradually we intend to cover all the insured depositors,” he said,” he said.

Following the revocation of the 46 MFB operating licences, the CBN subsequently appointed the NDIC as provisional liquidator of the failed financial institutions.