Nigerian manufacturers accessed a total of N68.7 trillion in bank loans between January and September 2025, highlighting both the scale of credit flowing into the sector and the pressure created by persistently high borrowing costs.
The figures are drawn from data released by the Central Bank of Nigeria’s (CBN) latest quarterly statistical bulletin.
While lending volumes remained sizeable, the trend across the months points to a gradual slowdown as tight monetary conditions weighed on borrowing appetite and capacity.
The data offer insight into how manufacturers have navigated credit markets under one of the most restrictive monetary policy environments in recent years, even as concerns mount over the sustainability of industrial growth.
CBN data show that lending to manufacturers was relatively stronger in the early months of 2025 before easing from mid-year, mirroring the impact of elevated interest rates on credit demand. The monthly breakdown underscores how monetary tightening filtered through the banking system into real-sector financing.
Manufacturers accessed N8.31 trillion in January and N8.03 trillion in February, before loans eased to N7.72 trillion in March.
Credit picked up modestly in April and May at N7.90 trillion and N7.82 trillion, respectively, before falling to N7.09 trillion in June.
Lending remained subdued in the third quarter, with N7.28 trillion in July, N7.43 trillion in August, and N7.09 trillion in September.
Overall, the pattern points to a softening in credit volumes from mid-year, suggesting that high interest rates have increasingly constrained borrowing conditions for manufacturers.
Beyond the headline lending figures, CBN disclosures highlight a widening gap between deposit rates and lending rates in the banking system.
According to the CBN, manufacturers accessed N9.54 trillion over the same January–September period in 2024.
The Monetary Policy Rate (MPR) stood at about 27 per cent throughout the period, reflecting the apex bank’s aggressive stance to curb inflation and stabilise the macroeconomic environment.
Although the MPR is not a direct lending rate, it serves as the benchmark from which banks price loans by adding risk premiums, operating costs, and sector-specific buffers.
Manufacturing is frequently classified as a higher-risk sector due to infrastructure gaps, high energy costs, and foreign exchange exposure, resulting in some of the steepest lending margins.
Manufacturers argue that these conditions make long-term industrial investment uncompetitive, limiting capacity expansion, delaying equipment upgrades, and weakening output growth when compared with peer economies that operate with single-digit lending rates.
The scale of lending in 2025 also reflects a sharp contrast with previous years, underscoring shifts in the size and dynamics of bank credit to the sector.
The significant jump in nominal lending points to larger ticket sizes and higher financing needs amid inflationary pressures.
The Manufacturers Association of Nigeria (MAN) has repeatedly urged the CBN to accelerate interest rate cuts, warning that sustained high rates continue to stifle production and erode competitiveness.
As policymakers balance inflation control with growth objectives, stakeholders maintain that a more accommodative credit environment will be critical to unlocking manufacturing-led industrialisation and supporting a durable economic recovery.
