Nigerian Manufacturers Face 26.8% Drop in Bank Credit
According to data from the Central Bank of Nigeria (CBN), bank credit extended to the manufacturing sector in Nigeria fell by 26.8% year-on-year to N5.19 trillion in June 2026. This decline, from N7.09 trillion in June 2025, indicates a continuing downward trend in lending to manufacturers amid persistent operational challenges.
The CBN's Q2 2026 statistical bulletin revealed that credit to manufacturers decreased from N6.57 trillion in January 2026 to N5.19 trillion in June, marking a reduction of about 21% over the six-month period. Monthly data showed consistent declines in lending from January to May, with a slight increase in June.
Despite the reduction in bank credit, the manufacturing sector contributed 9.57% to Nigeria's real Gross Domestic Product in Q1 2026 and generated N297.68 billion in Value Added Tax revenue in Q2 2025. Manufacturers are calling for stronger government support to address issues such as high electricity costs, logistics bottlenecks, and exchange-rate instability, which hinder production and expansion.
Plus234Feed summary based on reporting from Nairametrics. Read the original report below.
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