Manufacturing credit drops N1.92tn amid funding gaps

Nigeria's manufacturing sector experienced a severe contraction in commercial bank credit, falling by N1.92tn from N8.53tn to N6.61tn between December 2024 and December 2025. This 22.5% year-on-year decrease represents one of the steepest credit contractions among major economic sectors, according to data from the Central Bank of Nigeria.

“

According to the CBN data, commercial bank credit allocation to manufacturing contracted by N1.92tn from N8.53tn in December 2024 to N6.61tn in December 2025. This represents a significant year-on-year contraction of 22.5 per cent, which is particularly disturbing, given that manufacturing recorded one of the largest credit contractions among the top sectors.

The Manufacturers Association of Nigeria (MAN) has voiced strong concerns, blaming the Federal Government's inaction on the promised N1tn Manufacturing Stabilisation Fund. MAN Director-General Segun Ajayi-Kadir stated that the fund, part of the Accelerated Stabilisation and Advancement Plan, has not been implemented despite being announced in 2024. This delay leaves manufacturers navigating an environment with over 30% interest rates without the anticipated fiscal support.

“

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. For two years, we have awaited this fund to ameliorate the credit crunch in the sector and to cushion the impact of the twin shocks of currency devaluation and astronomical energy costs. There appears to be no visible effort at delivering on that score.

Ajayi-Kadir highlighted that the persistent non-implementation of the fund is a "promise not kept" for the sector. He noted that the fund was intended to alleviate the credit crunch and cushion the impact of currency devaluation and high energy costs. The lack of this support, coupled with prohibitive borrowing costs and risk-averse lending by banks, is forcing factories to scale down operations or exit the business, indicating a significant implementation deficit that hinders Nigeria's industrial potential.

“

This delay is worrisome. It has left genuine manufacturers to navigate an over 30 per cent interest rate environment without the promised fiscal cushion. As factories continue to scale down operations or exit the business altogether, the gap between policy promises and actual disbursement is symptomatic of an implementation deficit that continues to stifle Nigeria’s industrial potential.