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.
Manufacturing credit declines in 2026
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.
- Credit fell from N6.57 trillion in January to N6.37 trillion in February.
- It declined further to N5.77 trillion in March and N5.32 trillion in April.
- Lending dropped to N5.02 trillion in May before recovering slightly to N5.19 trillion in June.
- Despite the June increase from May, the latest figure remained significantly below the N7.09 trillion recorded a year earlier.
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.
Manufacturing sector maintains economic contribution
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.
- Manufacturing contributed a total of N1.17 trillion in VAT revenue in 2025.
- This represented an increase from N803.53 billion recorded in 2024.
- The figures point to the sector’s contribution to government revenue even as businesses face financing and operating pressures.
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 seek relief from rising costs
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.