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Manufacturers Warn as Sector Credit Falls ₦1.9trn
The Manufacturers Association of Nigeria (MAN) has warned of mounting financial pressure after bank credit to the sector fell by ₦1.92 trillion, dropping from ₦8.53 trillion in December 2024 to ₦6.61 trillion in December 2025.
In a statement signed by Director-General Segun Ajayi-Kadir, MAN said the 22.5% contraction in credit reflects worsening conditions for manufacturers already struggling with high energy costs, forex volatility, and rising production expenses.
The group lamented that lending rates remain prohibitive, with prime rates averaging 27% and maximum rates reaching 35.6%, despite the CBN’s Monetary Policy Rate being held at 26.5%.
“The primary barrier between manufacturers and financial bank liquidity is the exorbitant cost of borrowing,” MAN stated.
While manufacturing credit fell sharply, the oil and gas sector attracted ₦10.59 trillion and the finance sector ₦9.24 trillion, showing banks’ preference for industries with quicker returns.
MAN blamed the situation on stringent monetary policies, high Cash Reserve Ratios (45–50%), and banks’ risk-averse posture.
It noted that collateral and equity requirements shut smaller firms out of financing opportunities.
The association also criticised delays in implementing the ₦1 trillion Manufacturing Stabilization Fund promised under the Federal Government’s Accelerated Stabilization and Advancement Plan (ASAP), saying nearly two years later, manufacturers have yet to access the support.
MAN warned that limited access to affordable credit could suppress capacity utilisation, discourage investment, and trigger job losses. It cautioned that Nigeria’s Industrial Policy 2025 could be undermined if financing costs remain above 30%.
The group added that reduced domestic production could worsen supply-side inflation, increase reliance on imports, and put further pressure on foreign exchange demand.