Banks raised credit to traders by 62%, cut manufacturing lending by 27% – MAN

 Nigerian banks increased outstanding credit to traders by 62.04 per cent in the first half of 2026, while lending to manufacturers contracted by 26.94 per cent, raising concerns among industry stakeholders about financing constraints facing the productive sector.

The development comes as the Manufacturers Association of Nigeria (MAN) warns that high borrowing costs continue to undermine manufacturers’ access to affordable funds, despite recent adjustments to monetary policy.

Data published by the Central Bank of Nigeria (CBN) showed that average outstanding credit to trade and general commerce rose to N5.94 trillion in the first half of 2026, from N3.66 trillion in the corresponding period of 2025.

Conversely, manufacturing credit declined to N5.71 trillion from N7.81 trillion over the same period.

The figures represent average outstanding loan balances, rather than the total value of new loans granted during the period.

MAN Director-General, Segun Ajayi-Kadir, has previously warned that prime lending rates hovering around 30 per cent could continue to restrict manufacturers’ access to affordable financing.

His concern reflects the difficulties businesses face in securing funds to purchase raw materials, maintain machinery, expand production and meet working-capital requirements.

The decline in manufacturing credit also follows industry concerns over a reported N1.92 trillion reduction in bank lending to the sector during 2025.

The latest CBN figures indicate that manufacturing’s share of total outstanding bank credit fell from 16.43 per cent in the first half of 2022 to 9.58 per cent in the first half of 2026.

Trade and general commerce recorded the strongest year-on-year increase in outstanding credit in absolute naira terms among sectors that experienced growth.

Agriculture, construction, power and energy, and transportation and storage also recorded increases. Overall, 12 of the 17 sectors tracked posted growth, while five recorded declines.

Industrial oil and gas remained the largest recipient of bank credit, although its outstanding balance fell. General services, information and communication technology, and real estate also recorded contractions.