Bank credit to manufacturers falls 26.8% to N5.19 trillion, CBN data show

Nigerian banks’ outstanding credit to manufacturers fell 26.8% year on year to N5.19 trillion in June 2026, according to the Central Bank of Nigeria’s Q2 2026 statistical bulletin. The figure dropped from N7.09 trillion in June 2025, reflecting weaker lending to a sector still battling high production and operating costs.

Credit falls through first half

The CBN data showed manufacturing credit fell from N6.57 trillion in January 2026 to N5.19 trillion in June 2026, a reduction of about 21% over six months. Monthly figures show lending declined consistently between January and May before a modest increase in June.

Credit fell from N6.57 trillion in January to N6.37 trillion in February. It dropped to N5.77 trillion in March and N5.32 trillion in April. Lending fell to N5.02 trillion in May before recovering slightly to N5.19 trillion in June. Despite the June rise, the figure was still well below the N7.09 trillion recorded a year earlier.

The data point to weaker outstanding bank credit to manufacturers in the first half of 2026. The figures alone do not show whether the decline came from reduced new lending, loan repayments or changes in outstanding credit balances.

Manufacturers still contribute to GDP, VAT

Manufacturing remains a key part of Nigeria’s economic output and tax revenue. The sector accounted for 9.57% of real Gross Domestic Product in the first quarter of 2026, according to previous reporting. National Bureau of Statistics data also showed the sector generated N297.68 billion in Value Added Tax revenue in the second quarter of 2025, up from N286.95 billion in the first quarter.

Manufacturing contributed N1.17 trillion in VAT revenue in 2025, an increase from N803.53 billion in 2024. The figures underline the sector’s role in government revenue even as businesses face financing and operating pressure.

Manufacturers seek relief from costs

Manufacturers continue to call for stronger government support to address structural constraints. High electricity costs, logistics bottlenecks, insecurity, exchange-rate instability, multiple taxation and rising input expenses remain major challenges. These pressures raise production costs, complicate planning and limit capacity expansion.

Access to affordable and reliable financing is also important for manufacturers seeking to buy equipment, maintain operations and invest for growth. The combination of falling bank credit and continued output and tax contributions highlights how much access to financing matters for production and investment.

For the naira and Nigerian businesses, weaker manufacturing credit could constrain output, investment and capacity expansion at a time when manufacturers are still carrying high costs.