Credit prolonged by Nigerian banks to the manufacturing sector fell by 26.8 per cent year-on-year to N5.19 trillion in June 2026, from N7.09 trillion within the corresponding interval of 2025, in line with knowledge from the Central Bank of Nigeria (CBN).
The CBN’s second-quarter 2026 statistical bulletin additionally confirmed a sustained decline in excellent financial institution credit score to producers throughout a lot of the primary half of the 12 months, amid persistent challenges, together with excessive manufacturing prices, electrical energy bills, logistics constraints and exchange-rate pressures.
The knowledge indicated that manufacturing credit score declined from N6.57 trillion in January to N6.37 trillion in February, earlier than falling 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. Overall, the June determine represented a decline of about 21 per cent from January.
Despite the contraction in financial institution credit score, manufacturing continued to contribute to Nigeria’s financial output and authorities income.
The sector accounted for 9.57 per cent of the nation’s actual Gross Domestic Product within the first quarter of 2026.
Data from the National Bureau of Statistics additionally confirmed that manufacturing generated N297.68 billion in Value Added Tax income within the second quarter of 2025, in contrast with N286.95 billion within the previous quarter.
The sector contributed N1.17 trillion in VAT income in 2025, up from N803.53 billion in 2024.
However, producers proceed to face rising enter prices, costly electrical energy, logistics bottlenecks, insecurity, exchange-rate instability and a number of taxation, which may constrain manufacturing and enterprise growth.
The decline in excellent financial institution credit score underscores issues about financing circumstances for producers looking for to take care of operations, purchase tools and develop manufacturing capability.
However, the CBN figures don’t set up whether or not the discount resulted from decrease new lending, mortgage repayments or different modifications in excellent credit score balances.
Boluwatife Enome
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