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The Manufacturers
Association of Nigeria (MAN) will not comment on issues of interest to
its members, particularly as it concerns credit availability.

The association,
whose mission statement is to promote, in close cooperation with its
members, other organs of the organised private sector, the government,
and other stakeholders in the economy, an enabling environment for
industrial development, growth and prosperity of the society at large,
declined to make comments on the state of credit availability to its
members, after several enquiries and visits to its Lagos office.

The World Bank last
week released a report titled ‘Nigeria’s credit squeeze and beyond’,
saying that there was no evidence of credit squeeze in Nigeria and that
credit to manufacturing and commerce have been squeezed, but only a
little, a contrary view to the general belief of a credit squeeze in
the nation’s economy.

“A credit squeeze
does not appear to have taken place. Credit was not going to productive
sectors, instead it was going to margin lending, oil importers, and
insider lending. In early 2010, liquidity rises and interest rates
plummet. After that, rumours and anecdotes about a credit squeeze start
to circulate,” the report said.

The organisation
insists that credit is growing in most sectors and that money is not
the solution, as there are lots of liquidity in the system.

“Our conclusion is
that the real sector is not affected. Credit to the real sector has not
been squeezed, because less than one percent of Nigerian businesses
ever had access to bank finance. There is the need for responsible
growth in lending to the real sector, current incentive for banks with
low interest rates on government paper and squeezed bank margins.”

Bashir Borodo, the
president, Manufacturers Association of Nigeria (MAN), refused to
comment as he did not pick his calls. Jide Mike, the director general,
promised to respond to enquiries related to credit to the manufacturing
sector, but did not do so, even after visits to the secretariat.

“We have a
procedure here. It is only the director general and the president that
can speak. I can only facilitate the process of getting a response,”
said Rasheed Adegbenro, the corporate affairs official of the
association.

The association
serves and represents nearly 2000 companies in private and public
sectors in manufacturing, construction, and service sectors of the
national economy. Among other things, it is supposed to advise,
consult, and where necessary, join issues with government and other
bodies. However, on matters that affect its members, it is reluctant to
speak up for them.