MAN proposes financial, policy measures to boost manufacturing
In order to revitalize the country's manufacturing sector in 2026, the Manufacturers Association of Nigeria has called for the creation of a Manufacturing Refinancing and Rediscounting Facility in addition to a number of comprehensive financial and legislative initiatives.The proposed facility would enable commercial banks to refinance manufacturing loans at single-digit interest rates with tenors of up to seven years, relieving manufacturers of the burden of high borrowing costs, according to MAN's Director General, Segun Ajayi-Kadir, in its 2026 manufacturing outlook report.
If important macroeconomic conditions improve and government initiatives are implemented strategically and successfully, MAN expressed optimism that the sector could rebound in the upcoming year.
Ajayi-Kadir outlined several key actionable recommendations to strengthen the manufacturing sector in 2026, noting that they include:
“Further reduce the benchmark interest rate by at least 200–300 basis points over the next two quarters to make credit affordable for manufacturers.
“Launch a Manufacturing Refinancing and Rediscounting Facility (MRRF) that allows banks to refinance approved manufacturing loans at single-digit rates for up to 7 years.
“Create a publicly accessible dashboard tracking lending flows, interest rate spreads, loan approvals and sectoral disbursement patterns in real time.
“Craft and ensure the effective execution of the implementation strategy for the recently approved Nigeria Industrial Policy.
“Categorize manufacturers as strategic users of gas to remove the gap between what manufacturers and electricity generation companies pay per cubic foot of gas.
“Introduce a stable, transparent gas pricing framework for manufacturers and prioritize local gas supply before exports.
“Offer tax credits and recognition awards to companies and consumers patronizing locally manufactured goods.
“Establish a tax policy implementation and evaluation unit under the Federal Ministry of Finance to regularly assess how the new tax regime affects investment, manufacturing costs and MSME performance.”
The MAN boss also recommended the creation of a publicly accessible dashboard to track lending flows, interest rate spreads, loan approvals, and sectoral disbursement patterns in real time.
He linked the sector’s performance in 2026 to expectations of a stronger naira, easing inflation, and lower interest rates, but emphasized that the benefits would largely hinge on effective policy implementation and targeted government support.
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