Nigerian Manufacturers Cut Bank Loans by N1.44tn Amid High Rates and Tight Monetary Conditions

Nigerian manufacturers have significantly reduced their bank loans by N1.44 trillion in the first nine months of 2025, according to the Central Bank of Nigeria (CBN). The reduction, equivalent to a 16.9% decrease, is attributed to manufacturers grappling with high interest rates, weak demand, and escalating operational costs.

The credit to the manufacturing sector stood at N8.53 trillion in December 2024 but dropped to N7.09 trillion by September 2025. This decline indicates a deliberate pullback by manufacturers to manage costs rather than expanding through borrowing.

The trend of credit reduction persisted throughout the year, with intermittent minor increases followed by sharp declines, showcasing the challenges faced by the manufacturing sector in sustaining higher borrowing levels under prevailing financial conditions.