Manufacturers and players in the agricultural sector are facing high borrowing costs of up to 60 percent interest on bank loans, industry stakeholders have said.

The concerns come amid ongoing discussions about credit access in Nigeria’s real sector, where manufacturers and agric firms continue to seek financing from commercial banks to support production, expansion, and working capital needs.

Stakeholders said that commercial banks are charging interest rates ranging from 30 percent to as high as 60 percent per annum on loans extended to manufacturers and agricultural businesses.

According to the report, the cost of borrowing has increased significantly compared with previous years.

Manufacturers and agric sector operators described the high interest rates as a burden on business operations and expansion plans. They said the high cost of credit affects investment decisions and working capital management.

The report quoted industry representatives who said that banks charge different categories of rates depending on risk assessments and loan products, with some loans carrying nominal interest rates as high as 60 percent.