Credit prolonged by Nigerian banks to the manufacturing sector fell by 26.8% year-on-year to N5.19 trillion in June 2026, in accordance to data from the Central Bank of Nigeria (CBN), highlighting a decline in lending to manufacturers amid persistent working challenges.
The CBN’s Q2 2026 statistical bulletin confirmed that excellent financial institution credit to manufacturers dropped from N7.09 trillion in June 2025 to N5.19 trillion in June 2026.
The decline additionally continued a downward development in manufacturing credit recorded by means of a lot of the primary half of 2026.
The figures come as manufacturers proceed to cope with excessive manufacturing prices, electrical energy bills, logistics constraints and exchange-rate pressures.
Manufacturing credit declines in 2026
The CBN data confirmed that credit to manufacturers fell from N6.57 trillion in January 2026 to N5.19 trillion in June, representing a discount of about 21% over the six-month interval.
Monthly figures point out that lending to the sector declined constantly between January and May earlier than recording a modest enhance in June.
- Credit fell from N6.57 trillion in January to N6.37 trillion in February.
- It declined additional to N5.77 trillion in March and N5.32 trillion in April.
- Lending dropped to N5.02 trillion in May earlier than recovering barely to N5.19 trillion in June.
- Despite the June enhance from May, the newest determine remained considerably under the N7.09 trillion recorded a 12 months earlier.
The data recommend that excellent financial institution credit to manufacturers weakened over the primary half of 2026, though the figures alone don’t set up whether or not the decline resulted from decreased new lending, mortgage repayments or adjustments in excellent credit balances.
Manufacturing sector maintains financial contribution
Despite the decline in financial institution credit, manufacturing continues to contribute to Nigeria’s financial output and tax income.
Nairametrics beforehand reported that the manufacturing sector accounted for 9.57% of Nigeria’s real Gross Domestic Product in the first quarter of 2026.
Data from the National Bureau of Statistics (NBS) additionally confirmed that the sector generated N297.68 billion in Value Added Tax income within the second quarter of 2025, up from N286.95 billion within the first quarter.
- Manufacturing contributed a complete of N1.17 trillion in VAT income in 2025.
- This represented a rise from N803.53 billion recorded in 2024.
- The figures level to the sector’s contribution to authorities income whilst companies face financing and working pressures.
The mixture of declining financial institution credit and continued contributions to output and tax income highlights the significance of entry to financing for manufacturers searching for to maintain manufacturing and funding.
Manufacturers search aid from rising prices
Manufacturers proceed to call for stronger government support to tackle structural constraints affecting manufacturing and enterprise growth.
High electrical energy prices, logistics bottlenecks, insecurity, exchange-rate instability, a number of taxation and rising enter bills stay among the many challenges going through companies within the sector.
These pressures can enhance the price of manufacturing, complicate planning and restrict manufacturers’ skill to broaden capability. Access to reasonably priced and dependable financing can also be necessary for companies searching for to buy gear, preserve operations and put money into progress.
