N1.92trn credit crunch threatens Nigeria’s industrialisation drive – MAN

Nigeria's industrialization drive is under threat as the manufacturing sector grapples with a significant credit crunch, according to the Manufacturers Association of Nigeria (MAN). Bank lending to the sector has plummeted by N1.92 trillion, a development MAN warns could severely undermine industrial growth and exacerbate unemployment.

Segun Ajayi-Kadir, MAN's Director-General, issued a stark warning in a statement, emphasizing that the sharp decline in credit access jeopardizes the successful implementation of the Nigeria Industrial Policy (NIP) 2025. This policy aims to bolster the manufacturing sector and drive economic diversification.

The lack of adequate financing poses a critical challenge for manufacturers seeking to expand operations, invest in new technologies, and maintain existing production levels. Without sufficient credit, businesses may struggle to meet operational costs, leading to potential factory closures and job losses. This situation directly contradicts the government's stated goals of fostering industrial development and creating employment opportunities.

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The Manufacturers Association of Nigeria (MAN) has raised concerns over the sharp decline in bank credit to the manufacturing sector, warning that the development could undermine industrial growth, worsen unemployment and jeopardise the implementation of the Nigeria Industrial Policy (NIP) 2025.