MANUFACTURING SECTOR CREDIT FALLS BY ₦1.92 TRILLION AMID FUNDING CHALLENGES

Credit available to Nigeria’s manufacturing sector has declined by ₦1.92 trillion, raising concerns over the impact of funding constraints on industrial growth and productivity.

Industry data indicates that the reduction in credit access comes amid rising borrowing costs, tighter lending conditions, and broader economic pressures affecting businesses across the country.

Manufacturers say limited access to affordable financing continues to hinder expansion plans, equipment upgrades, and production capacity, particularly for small and medium-sized enterprises.

According to stakeholders, the funding gap is further compounded by foreign exchange challenges, high energy costs, and inflationary pressures that have increased operational expenses.

Industry operators warned that reduced credit availability could weaken the sector’s contribution to economic growth, employment generation, and non-oil exports.

Economic analysts noted that access to long-term and low-cost financing remains critical to improving competitiveness and supporting industrial development.

They called for stronger collaboration between financial institutions, policymakers, and development finance agencies to create more favourable lending conditions for manufacturers.

Stakeholders also urged government authorities to implement policies that encourage investment and improve access to capital for productive sectors of the economy.

The development highlights ongoing concerns about financing constraints facing Nigeria’s manufacturing industry despite its strategic importance to economic diversification and sustainable growth.