Nigeria's Manufacturing Sector Sees 22.5% Credit Decline

The Manufacturers Association of Nigeria (MAN) reported a 22.5% decline in credit allocation to the manufacturing sector in 2025, with figures falling from ₦8.53 trillion in December 2024 to ₦6.61 trillion in December 2025. Segun Ajayi Kadir, the Director General of MAN, expressed concern over this significant drop, noting that it undermines industrial growth and job creation.

The manufacturing sector has experienced one of the steepest credit contractions among major economic sectors, trailing behind the oil and gas sector, which attracted ₦10.59 trillion in credit. Kadir attributed the decline to high interest rates, bureaucratic bottlenecks, and policy inconsistencies, criticizing the non-implementation of the ₦1 trillion manufacturing stabilization fund.

He called for urgent government action, including reducing benchmark interest rates and releasing the stabilization fund to support manufacturers. The current interest rate environment exceeds 30%, which has led to operational scaling down and market exits among manufacturers.