Outstanding bank credit to Nigeria’s manufacturing sector fell 26.8 per cent year-on-year to N5.19 trillion in June 2026, according to Central Bank of Nigeria figures, underscoring tighter financing conditions for producers facing elevated operating costs.
The CBN’s second-quarter 2026 statistical bulletin showed that credit to manufacturers declined from N7.09 trillion in June 2025 to N5.19 trillion a year later. The reduction continued a broader downward trend recorded through much of the first half of 2026.
Manufacturers have been contending with high production expenses, rising electricity bills, logistics bottlenecks and exchange-rate pressures, all of which have complicated operations and investment decisions.
Steady Decline Through First Half of 2026
CBN data indicate that credit to the sector fell from N6.57 trillion in January 2026 to N5.19 trillion in June, a reduction of about 21 per cent over six months. Lending declined consistently between January and May before posting a modest rebound in June.
Monthly figures show credit moving from N6.57 trillion in January to N6.37 trillion in February, then to N5.77 trillion in March and N5.32 trillion in April. It bottomed at N5.02 trillion in May before edging up to N5.19 trillion in June. Despite that slight recovery, the June total remained well below the N7.09 trillion recorded in the same month of 2025.
The data do not by themselves establish whether the fall resulted from lower new lending, loan repayments or other adjustments to outstanding balances.
Sector Still Contributes to Output and Revenue
Even as bank credit contracted, manufacturing continued to support economic activity and government revenue. The sector accounted for 9.57 per cent of real gross domestic product in the first quarter of 2026.
National Bureau of Statistics figures also show that manufacturing generated N297.68 billion in value-added tax in the second quarter of 2025, up from N286.95 billion in the first quarter. For the full year 2025 the sector contributed N1.17 trillion in VAT, an increase from N803.53 billion in 2024.
The combination of shrinking bank credit and sustained contributions to output and tax receipts highlights the importance of reliable financing for manufacturers seeking to maintain production and invest in expansion.
Calls for Support Against Rising Costs
Industry operators continue to press for stronger government measures to ease structural constraints. High electricity costs, logistics bottlenecks, insecurity, exchange-rate volatility, multiple taxation and rising input prices remain among the principal challenges.
These pressures raise the cost of production, make planning more difficult and limit the ability of firms to expand capacity. Access to affordable and predictable financing is especially critical for businesses looking to acquire equipment, sustain operations and pursue growth.
