High interest rate threatening local manufacturing, says Okeowo

Princess Bakare-Okeowo, managing director of The Mart Supermarket, has warned that the high-interest-rate environment in the country is threatening the local manufacturing of goods.

Speaking at the grand opening ceremony of The Mart Supermarket, Isheri branch, Ogun State, recently, she said that the excessively high interest rate at deposit money banks translates to higher borrowing costs, which will strangulate manufacturers.

“The interest rate is too high. We keep hearing that there is a single digit for manufacturers, but when you go, you find out that it is not a single digit,” she said.

According to her, high interest rate leads to increased production costs, higher prices of finished goods, lower competitiveness, and production capacity expansion.

She urged the government to promote competitive production of made-in-Nigeria goods by providing single-digit loans for manufacturers, adding that local producers are burdened by rising insecurity, multiple taxation and policy flip-flop, among others.

Commenting on the opening of the supermarket, she noted that the Made-in-Nigeria goods are sold to support local manufacturers.

She urged Nigerians to patronise locally manufactured goods and dispel the long-drawn belief that anything produced in the country was inferior, while everything imported was superior.

Speaking also, Leye Kupoluyi, an engineer and the president of the Lagos Chamber of Commerce and Industry (LCCI), noted that the exchange stability has made it possible for manufacturers to plan and make projections.

However, Kupoluyi noted that with affordable financing, manufacturers will be able to produce competitively and thrive.

He described Okeowo as a serial entrepreneur, while commending her contribution to the growth of the Nigerian manufacturing sector.

Adebola Sofela, Ogun State commissioner for Industry, Trade and Investment, said the commissioning of The Mart regional outlet demonstrates the resilience, vision, and impact of private sector-led investment.

Sofela, who was represented by Kehinde Omitogun, a commercial officer in the ministry, said the flagship store in OPIC was strategically established to strengthen commercial activities in the rapidly growing corridor.

He added that beyond offering modern retail services, the outlet would create meaningful employment opportunities, particularly for youths.

Josephine Okojie-Okeiyi is a journalist with over five years’ reporting experience. She writes on industry, agriculture, commodities, climate change, and environmental issues. She is fellow of Thomson Reuters Foundation and Bloomberg Media Initiative for Africa.

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