The Manufacturers Association of Nigeria has urged the establishment of a Manufacturing Refinancing and Rediscounting Facility, alongside a series of broad financial and policy measures, to rejuvenate the nation’s manufacturing sector in 2026.

In its 2026 manufacturing outlook report, MAN’s Director General, Segun Ajayi-Kadir, stated that the proposed facility would allow commercial banks to refinance manufacturing loans at single-digit interest rates with tenors of up to seven years, easing the burden of high borrowing costs on manufacturers.

MAN expressed optimism that the sector could recover in the coming year, provided key macroeconomic conditions improve and government policies are strategically and effectively executed.

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.