Nigerian Banks Cut Manufacturing Credit by 26.8% in 2026

Credit extended by Nigerian banks to the manufacturing sector fell by 26.8% year-on-year to N5.19 trillion in June 2026, according to the Central Bank of Nigeria’s Q2 2026 statistical bulletin. This decline from N7.09 trillion in June 2025 reflects a tightening of lending conditions and a reduced appetite for loans among manufacturers facing high interest rates and elevated operating costs.

The data showed a consistent downward trend in the first half of 2026, with credit decreasing from N6.57 trillion in January to N5.02 trillion in May before a slight recovery in June. Stakeholders, including Engr. Leye Kupoluyi, president of the Lagos Chamber of Commerce and Industry, emphasized that access to affordable credit is crucial for private-sector growth.

They urged monetary authorities and banks to enhance credit intermediation for the real sector. Despite the credit decline, the manufacturing sector accounted for 9.57% of Nigeria’s real GDP in Q1 2026 and contributed N1.17 trillion in VAT for the full year 2025.