Local manufacturers have raised concerns about the size of loans given to the manufacturing sector by commercial banks, describing it as inadequate and one that does not encourage productivity in the sector.
According to the Manufacturers Association of Nigeria , about 53 per cent of manufacturers disagreed that commercial bank loans to the manufacturing sector encourages productivity.
Using the Manufacturers CEO’s Confidence Index of MAN as a benchmark for measuring changes in the pulse of operators and trends in the manufacturing sector quarterly, the local producers noted that these issues, among others, are principally responsible for the difficult operating environment and its declining implication on manufacturing activities in the country during the quarter under review.
But when they are swimming in liquidity, they resort to SDF to unpack the excess. Successive CBN governors have incentivised banks to use SLF to fund the country’s economy out of the doldrums. While the sudden rise in SDF suggests a healthy and liquid banking sector, it also points to falling credit penetration, with diverse possibilities in-between.
Citing the adverse effect of the Consumer Price Index , continuous erosion in Naira value and difficulty in accessing foreign exchange, high cost of energy, persisting insecurity and the consequences of lingering Russian-Ukrainian war, local manufacturers also cited waning confidence in the business environment in Nigeria.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
22 migrants die in boat sinking off Madagascar | The Guardian Nigeria News - Nigeria and World NewsAt least 22 migrants died when their boat sank off the coast of Madagascar over the weekend, the island nation's maritime authorities said on Monday.
Read more »
NDLEA recruitment: Large number of applicants crash website | The Guardian Nigeria News - Nigeria and World NewsThe website of the National Drug Law Enforcement Agency (NDLEA) is down as of Monday morning. Sources told The Guardian that the downtime could be linked to the high number of applicants visiting the NDLEA website for its recruitment. Checks by The Guardian correspondent as of 12:48 pm on Monday showed the NDLEA website indicating […]
Read more »
Pfizer buys biotech firm Seagen for $43 billion | The Guardian Nigeria News - Nigeria and World NewsUS pharmaceutical giant Pfizer announced Monday it had reached a deal to buy biotech firm Seagen, specialising in innovative cancer treatment, for $43 billion.
Read more »
Iran insists prisoner swap agreed despite US denial | The Guardian Nigeria News - Nigeria and World NewsIran insisted on Monday that it had reached a prisoner exchange deal with arch foe the United States, a day after Washington denied the claim as 'an especially cruel lie'.
Read more »
Africa major importer of sesame- Shanghai Customs | The Guardian Nigeria News - Nigeria and World NewsShanghai Customs on Monday said Shanghai’s Waigaoqiao Port had seen a total of 1,845 tonnes of sesame imported from Africa this year, marking a year-on-year increase of 4.3 times. Shanghai Customs said China is currently the largest import market for African sesame, with Waigaoqiao serving as the main port of entry into Shanghai. It said […]
Read more »
Fire razes shops at Singer market in Kano | The Guardian Nigeria News - Nigeria and World NewsThe Kano State Fire Service on Monday confirmed that fire had razed some improvised shops and the upper building of old Savannah Bank at Singer market in Kano.
Read more »