Business

MAN Tasks CBN On Monetary Policy Failures To Curb Inflation

Published

3 years ago

May 25, 2023

398 Views

The Manufacturers Association of Nigeria (MAN) says that the Monetary Policy of the Central Bank of Nigeria (CBN) has failed to curb the rising inflation in the economy.

The Association, therefore, urges the apex bank to think outside the conventional monetary policy framework and take pragmatic steps to quell the inflationary pressure and reposition the economy.

Reacting today, to the CBN’s Monetary Policy Rate (MPR) which raised to 18.5 percent in May 2023 from 18 percent, MAN said : ” This MPR increase is the 7th in a trend and the inflation rate continues to rise despite the increases.

Segun Ajayi-Kadir, its Director-General, said that this is a clear indication that the policy tightening is not effective in curbing the inflationary pressures and more needed to be done.
What Should Be Done?
” It is evident that the continuous and consistent increase in MPR is not yielding the desired growth in the economy.

” The Nigerian economy remains fragile and bedeviled with numerous challenges that inhibit growth. Therefore, the monetary authority needs to pay closer attention to rethink the policy mix, bearing in mind the parlous state of the economy, especially the effect of a high MPR on the manufacturing sector and the economy.

The increase in MPR from 18% to 18.5% will certainly lead to an increase in lending rates and worsen the uncompetitiveness of the manufacturing sector.

The Association has been clamoring for single-digit lending rates to allow manufacturers access needed funds to boost the performance of the sector.

This increase, like the previous ones, is evidence that the CBN is either unperturbed about the plight of the productive sector or is unable to fathom out a more creative policy mix that would reflate the sector.

We are persuaded that monetary authority is oblivious of the fact that the failure of its tightening policy to address the inflationary pressure is because the hike in inflation is largely caused by a combination of familiar challenges, including low output which is attributed to instability of macroeconomic variables, inconsistent and lackluster fiscal policy regime, incoherent industrial policies, challenging and expensive operating environment, exploitative regulation, external shocks and poor exchange rate management.

Therefore, there is a need to address the identified root causes of inflation and refrain from intensifying policy choices that hamper the performance of the real sectors of the economy.

Interrelationship Among Interest Rate, Inflation Rate and Exchange Rate

The movements of interest rate, inflation rate and exchange rate have direct impact on investment, employment and output of any economy.

In the conventional monetary framework that was adopted by the CBN, increase in MPR should increase interest rate and by extension attract financial investment.

However, it will also increase the cost of borrowing, crowd out more investments in the real sector and lower the output of the manufacturing sector, ” said the Director-General.

Business

NBS rates Lagos most indebted Nigerian state with N1.22trn domestic debt

While Lagos State had the highest domestic debt in Q4 2025 with N1.22 trillion, Rivers came second with N378.81 billion, while Jigawa State recorded the lowest with N1.60 billion, followed by Ondo with N8.42 billion.

Published

6 hours ago

May 7, 2026

OCHEFA

29 Views

• Lagos Governor , Babajide Sanwo-Olu

Lagos State has been ranked emerging as the most indebted state in Nigeria, owing creditors a total of N1.22 trillion and $1.17 billion in domestic and external debts, respectively,

In its Q4 2025 domestic and external debt report, the National Bureau of Statistics (NBS) said that the country’s total debt stock, comprising domestic and external debt, rose from N153.29 trillion or $103.94 billion in Q3 2025 to N159.28 trillion or $110.97 billion in Q4 2025.

The report said this represented an increase of 3.90 per cent on a quarter-on-quarter basis, adding that total external debt stood at N74.43 trillion, while total domestic debt was N84.85 trillion in Q4 2025.

The share of external debt, in naira value, was 46.73 per cent in Q4 2025, while the share of domestic debt, also in naira value, stood at 53.27 per cent of total public debt.

Lagos State also recorded the highest external debt over the reference period with $1.17 billion, followed by Kaduna with $684.29 million, while the Federal Capital Territory (FCT) had the lowest with $26.80 million, followed by Zamfara with $41.93 million, the NBS said.

According to the bureau, other heavily indebted states are Bauchi with $220.57 million and N156.05 billion as external and domestic debts respectively;

Delta with $63.42 million and N248.83 billion as external and domestic debts respectively; and Enugu with $99.88 million and N157.60 billion as external and domestic debts, respectively.

Business

Dangote unveils ambitious plan for 20,000MW power project

“We are now going into power… 20,000 megawatts,” said Dangote during a conversation with International Finance Corporation Managing Director Makhtar Diop, adding that Africa’s most pressing needs remain energy, fertilisers, and industrial inputs.

Published

11 hours ago

May 7, 2026

OCHEFA

27 Views

Aliko Dangote, the billionaire behind Africa’s largest industrial conglomerate, is determined to end Nigeria’s epileptic power sector with a plan to generate 20,000 megawatts of electricity.

Dangote’s entry into the sector follows a string of failed promises from the Nigerian government.

Adebayo Adelabu, ex-Power Minister, has repeatedly missed deadlines to stabilise the grid at even 6,000 megawatts, a fraction of what Dangote is now proposing.

Business

Enugu govt to build 660MW coal-fired power plant

Governor Peter Mbah disclosed this during a solidarity visit by the leadership of Organized Private Sector Nigeria (OPSN) to him at the Government House, Enugu, yesterday.

Published

11 hours ago

May 7, 2026

OCHEFA

33 Views

Photo: A coal fired power plant in Hanchuan, Hubei province, China / Getty Images

Enugu State Government has concluded plans to build a 660MW coal-fired power plant in the state.

Governor Peter Mbah disclosed this during a solidarity visit by the leadership of Organized Private Sector Nigeria (OPSN) to him at the Government House, Enugu, yesterday.

” I am pleased to inform you that in July, we will break ground for a 660MW coal-fired power plant.The outlay in terms of time for building the plant is 24 months. So, our target is to commission that power plant 24 months after the groundbreaking in July,” said Mbah.

Mbah recalled that Enugu State, under his leadership, was the first subnational to set up an electricity market, following the Constitution and Electricity Act amendments that effectively transferred power from the Exclusive List to the Concurrent List, thus paving the way for states to participate in all the power value chain, namely generation, transmission, and distribution.

The governor allayed concerns normally associated with coal, citing the low sulfur content and high calorific value of Enugu coal, standing at about 7,000 kilocalories per kilogramme.

He said the project was not a knee-jerk decision, as his administration had taken about two years to undertake the necessary studies and also secure coal assets to guarantee unhindered supplies to the plant.