FG and Manufacturers Collaborate to Lower Lending Costs

The Federal Government and manufacturers are taking steps to lower high lending costs and improve financing conditions that currently favor imports over local production. This initiative was discussed at the Ministerial Roundtable 2 organized by the Industrial Revolution Work Group in Lagos on a Friday.

The roundtable, themed ‘From Policy to Production: Financing Nigeria’s Industrial Take-off,’ aimed to translate industrial policy into effective financing instruments for manufacturers. Sen. John Enoh, the Minister of State for Industry, highlighted the challenges manufacturers face due to limited access to capital, exacerbated by high borrowing costs, which can reach up to 30 percent.

He emphasized the need for concrete financing instruments with assigned responsibilities and deadlines. The stakeholders agreed to specific timelines of 30, 60, and 90 days for implementation, with the Industrial Revolution Work Group overseeing the process.

Enoh noted that manufacturing's contribution to the economy has declined significantly, from over 20 percent in the early 1990s to around 7-9 percent for over a decade. Marie Ukpere, representing the Minister of Finance, reported a year-on-year growth of 3.29 percent in manufacturing for the first quarter of 2026, despite a decline in commercial bank credit to manufacturers.