Nigerian Banks Boost Trader Credit While Cutting Manufacturing Loans
In the first half of 2026, Nigerian banks raised outstanding credit to traders by 62.04%, reaching N5.94 trillion, up from N3.66 trillion in the same period of 2025. Conversely, lending to manufacturers fell by 26.94%, decreasing from N7.81 trillion to N5.71 trillion.
The Manufacturers Association of Nigeria (MAN), led by Director-General Segun Ajayi-Kadir, expressed concerns that high borrowing costs, with prime lending rates around 30%, are restricting manufacturers' access to affordable financing. This situation complicates their ability to secure funds for raw materials, machinery maintenance, production expansion, and working capital.
The decline in manufacturing credit follows a reported N1.92 trillion reduction in bank lending to the sector during 2025. The Central Bank of Nigeria's data indicates that manufacturing's share of total outstanding bank credit dropped from 16.43% in the first half of 2022 to 9.58% in the first half of 2026.
Overall, 12 of the 17 sectors tracked showed growth, while five experienced declines.
Plus234Feed summary based on reporting from Blueprint. Read the original report below.
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