Manufacturing Credit Falls by ₦1.92 Trillion as MAN Raises Concerns Over Funding Crisis

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LAGOS - June 25, 2026

Nigeria's manufacturing sector recorded a sharp decline in access to bank credit, with total lending to manufacturers dropping by ₦1.92 trillion within a year, according to new industry data.

The Manufacturers Association of Nigeria (MAN) has attributed the decline to high lending rates, policy implementation delays, and structural challenges that continue to limit access to affordable financing.

Industry leaders warn that the trend could undermine industrial growth, job creation, and the country's long-term economic diversification goals.

Credit to Manufacturers Records Sharp Decline

Data from the Central Bank of Nigeria (CBN) shows that commercial bank lending to the manufacturing sector fell from ₦8.53 trillion in December 2024 to ₦6.61 trillion in December 2025.

The reduction represents:

• A decline of ₦1.92 trillion
• A 22.5% year-on-year contraction
• One of the largest credit reductions among major sectors of the economy

The figures highlight growing financial pressures facing manufacturers amid a challenging operating environment.

MAN Blames High Borrowing Costs

The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, described the development as a major concern for the sector.

According to MAN, manufacturers continue to struggle with:

• Rising interest rates
• Limited access to affordable credit
• Policy inconsistencies
• Infrastructure deficits
• Foreign exchange challenges

Industry stakeholders argue that high borrowing costs have significantly reduced the ability of businesses to invest in new equipment, expand operations, and increase production capacity.

Lending Rates Remain Elevated

Manufacturers are currently facing some of the highest borrowing costs in recent years.

Available data shows:

Indicator	Rate
Prime Lending Rate	27%
Maximum Lending Rate	35.6%

Experts say financing costs at these levels make it difficult for many businesses to remain competitive, particularly against imported products.

Concerns Over ₦1 Trillion Stabilisation Fund

MAN also criticised the continued delay in implementing the ₦1 trillion Manufacturing Stabilisation Fund, which was announced as part of the Federal Government's economic support initiatives.

The association argues that the fund was designed to provide relief to manufacturers struggling with rising operational costs and financing constraints.

Industry leaders say its implementation could help stimulate production, preserve jobs, and improve business confidence.

Manufacturing Trails Other Sectors

The manufacturing sector's decline in credit allocation comes as other industries continue to attract larger portions of commercial lending.

According to available data:

• Oil and gas sector received approximately ₦10.59 trillion in credit
• Financial sector attracted about ₦9.24 trillion
• Manufacturing sector received ₦6.61 trillion

Economists say the disparity raises concerns about the ability of manufacturers to access sufficient capital for growth and expansion.

Why Manufacturing Matters

Manufacturing plays a crucial role in Nigeria's economy by:

• Creating jobs
• Supporting exports
• Reducing import dependence
• Stimulating industrialisation
• Strengthening economic diversification

Analysts warn that prolonged funding challenges could slow progress toward these objectives.

What Happens Next?

Industry stakeholders are calling on policymakers to:

• Accelerate implementation of the stabilisation fund
• Improve access to affordable credit
• Reduce bureaucratic barriers
• Strengthen industrial support policies
• Enhance the business environment

Many believe these measures will be critical to restoring confidence and supporting long-term industrial growth.

Why This Matters

The health of Nigeria's manufacturing sector affects employment, investment, productivity, and economic resilience.

As the country seeks to diversify away from oil dependence, ensuring adequate funding for manufacturers could become increasingly important for sustainable growth.

Key Takeaways

• Manufacturing credit fell by ₦1.92 trillion in one year.
• Total lending declined from ₦8.53 trillion to ₦6.61 trillion.
• MAN blames high interest rates and delayed policy implementation.
• Borrowing costs have risen as high as 35.6%.
• Industry leaders want the ₦1 trillion Manufacturing Stabilisation Fund implemented.

Manufacturing credit Nigeria, MAN Nigeria, Nigerian manufacturing sector, industrial financing Nigeria, manufacturing stabilisation fund, business news Nigeria, CBN lending data, industrial growth Nigeria, Segun Ajayi-Kadir.