Nigerian Manufacturing Firms Experience Decline in Finance Costs Amid Economic Pressures

In the first half of 2025, Nigerian manufacturing firms saw a significant decrease in finance costs compared to H1 2024, except for Neimeth, which reported a sharp rise due to increased borrowing expenses. The outlook for the full year is uncertain due to inflation, foreign exchange fluctuations, and economic growth challenges.

Despite a cooling headline inflation and recent policy rate cuts by the Central Bank, risks such as inflation, import costs, and currency market fluctuations persist. The manufacturing sector's growth, with a 7.45% increase in the non-oil sector contributing significantly to GDP, is supported by lower borrowing costs and stable naira.