Nigerian Banks Boost Trade Lending by 62% Amid Manufacturing Decline

In the first half of 2026, Nigerian banks increased lending to the trade and general commerce sector by 62.04%, reaching N5.94 trillion, according to Nairametrics Research’s analysis of data from the Central Bank of Nigeria (CBN). In contrast, manufacturing credit experienced a significant decline of 26.94%, falling to N5.71 trillion from N7.81 trillion in H1 2025.

This shift indicates that while trade saw substantial growth in bank financing, manufacturing's share of total outstanding bank credit decreased from 16.43% in H1 2022 to 9.58% in H1 2026. Overall, 12 of the 17 sectors tracked recorded increases in credit, but the average outstanding credit across the economy showed only slight growth, suggesting that the increase in trade was not indicative of a broader lending surge.

The Manufacturers Association of Nigeria previously raised concerns about a N1.92 trillion drop in manufacturing credit during 2025, and the pressure continued into 2026. The CBN's reduction of the Monetary Policy Rate to 23% in September 2026 may impact future lending conditions.