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🇳🇬 Nigeria /Economy & Trade

MAN Laments Credit Contraction of N1.92trn to Manufacturing Sector in 2025

From ThisDay · () English

Summarized and contextualized by DistantNews.

At a glance

News Official statement Context piece
  • The Manufacturers Association of Nigeria (MAN) reports a severe credit contraction of N1.92 trillion in the manufacturing sector for 2025.
  • MAN warns that this credit squeeze, coupled with high borrowing costs averaging 24.4% to 33.8%, jeopardizes the implementation of Nigeria's industrial policy.
  • The association highlights that Nigeria's manufacturing sector lags behind international peers like India and Vietnam, which are experiencing credit growth to fuel industrial expansion.

Nigeria's manufacturing sector is facing a critical credit crunch, with a contraction of N1.92 trillion in 2025, according to the Manufacturers Association of Nigeria (MAN).

Starving factories of affordable credit blocks technology upgrades and prevents operators from maintaining optimal capacity utilization or expanding local manufacturing plants.

— MANDescribing the negative impact of credit contraction on the manufacturing sector.

The association's Director-General, Segun Ajayi-Kadir, stated that this significant decline, representing a 22.5% year-on-year contraction, is particularly concerning as it leaves manufacturing behind sectors like Oil & Gas and Finance. MAN warns that this persistent credit squeeze, combined with commercial borrowing costs ranging from 24.4% to 33.8%, makes long-term capital investments unviable and could sabotage the successful execution of Nigeria's Industrial Policy.

"Starving factories of affordable credit blocks technology upgrades and prevents operators from maintaining optimal capacity utilization or expanding local manufacturing plants," MAN stated. The association lamented that it is "practically impossible to build a 21st-century industrial economy when forcing factories to fund their capital footprint through 19th-century primitive capital constraints."

It is practically impossible to build a 21st-century industrial economy when forcing factories to fund their capital footprint through 19th-century primitive capital constraints.

— MANHighlighting the outdated financial constraints faced by Nigerian manufacturers.

MAN contrasted Nigeria's situation with international trends, noting that India's bank credit to industry grew by 9.6% year-on-year by late 2025, while Vietnam targeted 19% to 20% credit growth to fuel its manufacturing engines. Ajayi-Kadir emphasized that the Nigerian manufacturing sector cannot thrive without sustainable financial foundations, warning that reduced credit access could stall technological upgrades, hinder job creation, slow diversification efforts, and increase vulnerability to external commodity shocks and supply-driven inflation.

Clearly, the Nigerian manufacturing sector cannot thrive without sustainable and growing financial foundations.

— Ajayi-KadirConcluding the association's position on the need for financial support.
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Originally published by ThisDay. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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