Nigeria's Manufacturing Sector Faces N1.92trn Credit Drop

The Manufacturers Association of Nigeria (MAN), represented by Director General Segun Ajayi Kadir, disclosed a significant credit contraction of N1.92 trillion to the manufacturing sector, projected for December 2025. This represents a 22.5% year-on-year decline, raising concerns about the sector's ability to thrive amid persistent financial constraints.

The average commercial lending rate is currently around 24.4%, with maximum lending rates reaching 33.8%, making long-term capital investments unviable. Ajayi Kadir emphasized that the manufacturing sector cannot succeed without sustainable financial foundations, warning that reduced credit access would stifle technological upgrades and job creation.

The report also noted that while the manufacturing sector faces a steep decline in credit, sectors like oil and gas are experiencing growth, with credit allocations of N10.59 trillion. The Central Bank of Nigeria (CBN) has made slight adjustments to monetary policy, but high borrowing costs remain a significant barrier to manufacturing expansion.