Nigerian manufacturers' bank credit falls 26.8% to N5.19tn despite sector's economic contribution
Credit extended by Nigerian banks to manufacturers dropped 26.8% year-on-year to N5.19 trillion in June 2026, down from N7.09 trillion in June 2025, according to Central Bank of Nigeria data. The decline continued through H1 2026, falling from N6.57 trillion in January to N5.02 trillion in May before a slight June recovery to N5.19 trillion. Manufacturers face high production costs, electricity expenses, logistics constraints and exchange-rate pressures driving this trend. Despite the credit squeeze, manufacturing remains economically significant—contributing 9.57% to Nigeria's real GDP in Q1 2026 and generating N297.68 billion in VAT revenue in Q2 2025 (up from N286.95 billion in Q1). Sector-wide VAT revenue hit N1.17 trillion in 2025, up from N803.53 billion in 2024. Businesses continue calling for government support to address structural constraints like multiple taxation and insecurity, emphasizing that affordable financing is crucial for equipment purchases, operations and growth investment. With manufacturing still contributing nearly 10% to GDP while credit access deteriorates, will policymakers prioritize targeted financing interventions or allow sectoral pressures to persist?