Bank lending to manufacturers falls 26.8% in Nigeria
By the AFREEQUE newsroom, based on Vanguard
Nigerian banks cut lending to manufacturers by 26.8% to 5.19 trillion naira in the first half of 2026, down from 7.09 trillion a year earlier. Manufacturers are calling for better credit guarantees and the full activation of a 1 trillion naira stabilisation fund, according to Vanguard, citing Central Bank of Nigeria data.
Loans granted by Nigerian banks to the manufacturing sector fell by 26.8% year on year to 5.19 trillion naira in the first half of 2026, compared with 7.09 trillion during the same period in 2025. The decline comes as manufacturers face rising production, electricity and logistics costs, as well as exchange rate pressures, Nigerian daily Vanguard reports, citing the Central Bank of Nigeria’s second-quarter statistical bulletin.
Outstanding bank credit to manufacturers fell by about 21% between January and June 2026, from 6.57 trillion to 5.19 trillion naira. It declined each month to 5.02 trillion in May before edging back up to 5.19 trillion in June, according to the Central Bank of Nigeria.
The Manufacturers Association of Nigeria is calling for stronger credit guarantees and the full implementation of a 1 trillion naira stabilisation fund. The National Credit Guarantee Company, meanwhile, said it had enabled loans worth 46.95 billion naira to be issued to 67,512 borrowers, backed by 21.59 billion naira in guarantees, Vanguard reports.
The president of the Bank of Industry, a public institution that finances industrial development, estimates that Nigeria needs 35 billion dollars a year to industrialise. The Centre for the Promotion of Private Enterprise also considers guarantees essential to expanding access to finance.
