Manufacturing credit crashes by N1.92tn as funding gaps persist
By Aboki Forex —
The Manufacturers Association of Nigeria has blamed the Federal Government for failing to deliver a promised N1tn stabilisation fund, saying this contributed to a sharp drop in bank credit to the sector.
Commercial bank loans to manufacturers fell by N1.92tn between December 2024 and December 2025, according to Central Bank of Nigeria data. The total dropped from N8.53tn to N6.61tn, a 22.5 percent year-on-year contraction.
MAN Director General Segun Ajayi-Kadir described the decline as disturbing. He said the sector recorded one of the steepest credit contractions among major sectors of the economy.
Manufacturing now trails behind oil and gas, which attracted N10.59tn in credit, and finance, which received N9.24tn.
Ajayi-Kadir pointed to prohibitive borrowing costs, risk-averse lending by banks, and the continued delay in implementing the N1tn Manufacturing Stabilisation Fund as key reasons for the drop.
“The persistent non-implementation of the N1tn Manufacturing Stabilisation Fund, despite its prominent inclusion in the Accelerated Stabilisation and Advancement Plan since 2024, remains an issue of promise not kept for the manufacturing sector,” he said.
He added that manufacturers have been forced to operate in a high-interest-rate environment without the promised support. Interest rates are above 30 percent.
“This delay is worrisome. It has left genuine manufacturers to navigate an over 30 percent interest rate environment without the promised fiscal cushion. As factories continue to scale down operations or exit the market, the impact on jobs and output is severe,” Ajayi-Kadir said.