Banks slash lending, cut N5.4trn across key sectors
To reverse the trend, MAN urged the CBN and the Federal Government to further reduce interest rates, lower the CRR for banks supporting manufacturers, recapitalise the Bank of Industry, operationalise the N1 trillion Manufacturing Stabilisation Fund and introduce government-backed credit guarantees to encourage lending to the real sector.
MAN blamed the development on prohibitively high lending rates, stringent banking conditions, elevated Cash Reserve Ratio (CRR), the CBN’s suspension of direct development finance interventions and the delayed implementation of the proposed N1 trillion Manufacturing Stabilisation Fund.01 trillion or about 70 per cent of the total additional credit extended to the nine sectors that recorded growth.
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