Credit extended by Nigerian banks to the manufacturing sector fell by 26.8% year-on-year to N5.19 trillion in June 2026, according to data from the Central Bank of Nigeria (CBN), highlighting a decline in lending to manufacturers amid persistent operating challenges.
The CBN’s Q2 2026 statistical bulletin showed that outstanding bank credit to manufacturers dropped from N7.09 trillion in June 2025 to N5.19 trillion in June 2026.
The decline also continued a downward trend in manufacturing credit recorded through much of the first half of 2026.
The figures come as manufacturers continue to contend with high production costs, electricity expenses, logistics constraints and exchange-rate pressures.
The CBN data showed that credit to manufacturers fell from N6.57 trillion in January 2026 to N5.19 trillion in June, representing a reduction of about 21% over the six-month period.
Monthly figures indicate that lending to the sector declined consistently between January and May before recording a modest increase in June.
The data suggest that outstanding bank credit to manufacturers weakened over the first half of 2026, although the figures alone do not establish whether the decline resulted from reduced new lending, loan repayments or changes in outstanding credit balances.
Despite the decline in bank credit, manufacturing continues to contribute to Nigeria’s economic output and tax revenue.
Nairametrics previously 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) also showed that the sector generated N297.68 billion in Value Added Tax revenue in the second quarter of 2025, up from N286.95 billion in the first quarter.
The combination of declining bank credit and continued contributions to output and tax revenue highlights the importance of access to financing for manufacturers seeking to sustain production and investment.
Manufacturers continue to call for stronger government support to address structural constraints affecting production and business expansion.
High electricity costs, logistics bottlenecks, insecurity, exchange-rate instability, multiple taxation and rising input expenses remain among the challenges facing businesses in the sector.
These pressures can increase the cost of production, complicate planning and limit manufacturers’ ability to expand capacity. Access to affordable and reliable financing is also important for businesses seeking to purchase equipment, maintain operations and invest in growth.
