Nigerian Manufacturers Face 32% Loan Interest Rates

In 2025, Nigerian manufacturers encountered an average interest rate of 32.1% on loans, a decrease from 35.6% in 2024. The average rate was 32.5% in the first half of 2025, moderating to 31.8% in the second half.

Despite this marginal improvement, borrowing costs remained high across all major industrial sectors, with each sector reporting annual average rates of at least 30.4%. The chemical and pharmaceuticals sector had the lowest average rate at 30.4%, while non-metallic mineral products faced the highest at 33%.

The Manufacturers Association of Nigeria indicated that the easing in rates reflected better economic conditions, including softer inflation and stable energy prices. However, the association emphasized that high financing costs continue to hinder manufacturing competitiveness and output growth, limiting businesses' ability to scale operations and invest in new capacities.