By Emmanuel Enitan
Bank credit to Nigeria’s manufacturing sector fell by 26.8 per cent to N5.19 trillion in June 2026 from N7.09 trillion a year earlier, raising concerns over access to financing for industrial production and investment amid persistent operating costs.
Data from the Central Bank of Nigeria’s (CBN) second-quarter 2026 statistical bulletin showed that outstanding credit to manufacturers declined by N1.90 trillion year-on-year, reflecting a sustained contraction in bank exposure to the sector during the first half of the year. <Cite refs={[“turn558562search0″,”turn558562search4”]}/>
The decline continued a downward trend recorded between January and May, when credit fell from N6.57 trillion to N5.02 trillion, before recovering slightly to N5.19 trillion in June.
The development comes as manufacturers grapple with high electricity tariffs, rising raw material costs, foreign exchange pressures and logistics challenges, which have increased production expenses and complicated investment decisions.
Access to affordable credit is critical for manufacturers seeking to finance working capital, acquire machinery, maintain production and expand capacity. The contraction in outstanding credit therefore raises questions about the availability and cost of funding for businesses seeking to sustain domestic production.
However, the CBN figures do not establish whether the decline resulted from reduced new lending, loan repayments or other changes in outstanding credit balances.
The trend also highlights the importance of financing conditions to Nigeria’s industrialisation drive, as manufacturers seek to strengthen local production, create jobs and reduce dependence on imported goods.
