Economy
MAN Urges CBN to Consider Interest Rate Cut
By Adedapo Adesanya
The Manufacturers Association of Nigeria (MAN) has appealed to the Central Bank of Nigeria (CBN) to reduce interest rates to ease the rising cost of borrowing.
This is in reaction to the outcome of the Monetary Policy Committee (MPC) meeting on November 24 and 25, where the apex bank kept the benchmark rate at 27 per cent.
On Wednesday, the group acknowledged 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.
In his statement, the Director-General of MAN, Mr 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.”
Mr 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.”
“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 organisation warned that persistent high lending rates would continue to limit manufacturers’ access to affordable credit, particularly those in the small and medium industrial cadre, adding 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, stressing that the apex bank should “strengthen handshake with the fiscal authority to promote reforms capable of unlocking the full potential of the manufacturing sector.”
It 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.
The body 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.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited rallied by 1.06 per cent on renewed investor confidence after surviving a run of losing streaks.
Yesterday, some performance indicators were better compared with the previous session, with the All-Share Index (ASI) chalking up 2,540.08 points to settle at 240,743.19 points versus Monday’s 238,203.11 points, and the market capitalisation gained N1.649 trillion to close at N154.484 trillion, in contrast to the preceding day’s N152.835 trillion.
As for the sectoral performance, the energy sector was down by 0.09 per cent, but the loss was offset by the gains recorded by the others.
The insurance counter grew by 2.84 per cent, the banking and the consumer goods indices rose by 0.18 per cent each, and the industrial goods segment expanded by 0.07 per cent.
Unlike on Monday, the market breadth index was positive on Tuesday, with Customs Street closing with 33 price gainers and 23 price losers, indicating bullish investor sentiment.
Guinea Insurance improved by 10.00 per cent to N1.10, International Energy Insurance advanced by 9.89 per cent to N6.11, Tripple Gee soared by 9.82 per cent to N3.69, Cornerstone Insurance climbed 9.76 per cent to N6.75, and Sovereign Trust Insurance surged by 8.63 per cent to N2.14.
On the flip side, Red Star Express dropped 9.96 per cent to trade at N24.85, Premier Paints depreciated by 9.93 per cent to N6.43, Trans-Nationwide Express declined by 9.82 per cent to N4.04, Royal Exchange shrank by 9.38 per cent to N1.45, and Abbey Mortgage Bank crashed by 9.29 per cent to N28.12.
Market activity improved during the trading day, with market participants transacting 564.9 million shares valued at N39.4 billion in 49,230 deals compared with the 475.8 million shares worth N36.5 billion traded in 63,567 deals a day earlier, implying a shortfall in the number of deals by 22.55 per cent, and a rise in the trading volume and value by 18.73 per cent and 7.95 per cent, respectively.
Fidelity Bank led the activity chart after a turnover of 59.4 million units worth N1.1 billion, Zenith Bank traded 49.5 million units valued at N5.9 billion, Dangote Sugar exchanged 43.1 million units for N3.1 billion, Chams sold 39.5 million units worth N156.5 million, and Access Holdings transacted 30.7 million units valued at N703.6 million.
By Adedapo Adesanya
The prices of the two major crude oil grades further declined on Tuesday as investors kept a close watch on crude flows through the Strait of Hormuz following signs of progress in US-Iran peace talks.
Brent futures lost 82 cents or 1.1 per cent to trade at $77.08 per barrel, while the US West Texas Intermediate (WTI) futures gave up 65 cents or 0.9 per cent to sell for $73.21 a barrel.
The market continued to edge lower after the US granted Iran a 60-day sanctions waiver following initial peace talks, while hostilities in Lebanon eased under a broader agreement.
Investors are cautiously watching how quickly Middle Eastern producers can resume oil production and exports following damage from the war, and whether more ships will enter the region.
After US Vice President JD Vance left Switzerland on June 22 after a round of talks over the weekend, President Donald Trump issued a warning to Iran that “I will do what I have to do” if it does not stick to its agreement with the US.
Mr Vance had noted movement on a framework toward reaching a final peace deal within 60 days, including the guarantee of safe passage through the Strait of Hormuz, an end to fighting in Lebanon, and Iran’s acceptance of visits by international nuclear inspectors.
On Tuesday, Oman and Iran agreed to press on with discussions about the future administration of navigation in the Strait of Hormuz, through which 20 per cent of crude and liquified natural gas (LNG) passes.
US Secretary of State Marco Rubio said on Tuesday that Iran would not be able to charge tolls in the key waterway as part of any final agreement with the United States, saying such an arrangement would violate international law.
According to the International Energy Agency (IEA), the world has lost millions of barrels of oil and gas supply since the Iran war closed the strait, putting the shut-in data at more than 14 million barrels per day of oil output or about 14 per cent of world demand.
Meanwhile, President Trump claimed that 19 million barrels of oil flowed out of the strait on Monday, and pointed to falling oil prices in a social media post on Tuesday.
The American Petroleum Institute (API) estimated that crude oil inventories in the US fell by 765,000 barrels in the week ending June 19. Official data from the US Energy Information Administration (EIA) will be released later on Wednesday.
By Aduragbemi Omiyale
The marketing and promotion of the planned initial public offering (IPO) by Dangote Petroleum Refinery & Petrochemicals FZE has been banned by the Securities and Exchange Commission (SEC).
A statement from the apex capital market regulator on Tuesday emphasised that it had yet to receive any application for such an offer or approve the purported IPO.
SEC noted that it had become aware of advertisements, flyers, digital banners and targeted electronic mails circulating on social media platforms and investment channels concerning a supposed securities offering by the refinery.
It expressed concern over the involvement of some Registered Capital Market Operators (CMOs) in what it described as an “unwholesome and manipulative exercise” of actively soliciting advance subscriptions for an offering that has not been presented to the commission.
“No application for the registration of an IPO or public offer of shares of the Refinery has been filed with or approved by the commission,” the agency noted, adding that the ongoing pre-marketing activities were “capable of misleading investors, distorting market expectations, creating information asymmetry and generally undermining the integrity of the capital market.”
It further stated that the marketing campaign and invitations to “create accounts”, “pre-fund,” or “secure guaranteed allocations” amounted to market manipulation and constituted “serious violation of the Investments and Securities Act.”
Consequently, the SEC directed all Registered Capital Market Operators, particularly stockbrokers and digital platform promoters, to immediately stop all promotional activities.
It also directed them to “cease with immediate effect from publishing, reposting, or distributing any promotional material, flyer, or commentary relating to the acquisition or allocation of shares in the Refinery.”
The commission further ordered operators to “remove or take down all such unauthorised marketing materials from websites, social media handles (including X, LinkedIn, Instagram, Facebook etc.), and messaging groups within twenty-four (24) hours of this notice.”
The regulator further instructed operators to desist from accepting deposits, commitments, account openings or expressions of interest from investors for the purported public offering and to “reverse and refund all funds already collected in connection with this purported offering to clients within twenty-four (24) hours of this notice.”
The organisation warned that defaulters would face sanctions as non-compliance would attract penalties under the Investments and Securities Act, 2025 and the SEC Rules and Regulations.
Advising investors to exercise caution, the SEC said members of the public should “rely only on formal, official pronouncements issued directly by the commission through its official channels.”
It warned that “all such high-pressure marketing tactics, or transfer of funds to any operator for ‘pre-IPO’ placement should be ignored as they did not receive the commission’s approval.”
SEC assured that if it eventually receives and clears an application for a public offering by the refinery, an approved prospectus would be made available to investors in line with the provisions of the Investments and Securities Act, 2025.
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