Nigerian Manufacturers Face 32.1% Interest Rates in 2025

In 2025, Nigerian manufacturers continued to experience high borrowing costs, with average interest rates remaining above 30 percent across major industrial sectors. The Manufacturers Association of Nigeria (MAN) reported that the average interest rate for manufacturers fell to 32.1 percent in 2025 from 35.6 percent in 2024.

The average lending rate was 32.5 percent in the first half of 2025, decreasing to 31.8 percent in the second half, indicating some improvement in credit conditions. However, this modest decline did not significantly alleviate the financial burden on manufacturers, with all surveyed sectors recording annual average borrowing rates of at least 30.4 percent.

The chemical and pharmaceuticals sector had the lowest average rate at 30.4 percent, while non-metallic mineral products faced the highest at 33 percent. MAN attributed the easing in borrowing costs to improved economic conditions, including lower inflation and stable energy prices, yet emphasized that high financing costs continue to hinder manufacturing competitiveness and output growth.