Manufacturing Credit Falls by N1.92 Trillion in Nigeria

The Manufacturers Association of Nigeria has reported a significant decline in manufacturing credit, which fell by N1.92 trillion from N8.53 trillion in December 2024 to N6.61 trillion in December 2025, marking a 22.5% year-on-year contraction. Segun Ajayi-Kadir, the Director General of the association, described this development as disturbing, noting that the manufacturing sector has experienced the steepest credit contraction among major economic sectors.

The decline is attributed to high lending rates, with the average prime lending rate at 27% and a maximum lending rate of 35.6%, making long-term investments unviable. Additionally, the government has failed to implement the promised N1 trillion manufacturing stabilization fund, which was intended to alleviate the credit crunch and support the sector amid rising costs and currency devaluation.

Ajayi-Kadir urged the government to release the stabilization fund and reduce benchmark interest rates to enhance lending to the manufacturing sector.