Nigerian manufacturers significantly reduced their outstanding bank loans by N1.44tn in the first nine months of 2025, according to data from the Central Bank of Nigeria’s quarterly statistical bulletin.

The decline in credit to the manufacturing sector reflects changes in borrowing patterns amid tight monetary conditions and elevated interest rates, as reported by the CBN.

Central Bank of Nigeria data on Deposit Money Banks’ sectoral distribution of credit show that lending to the manufacturing sector fell from N8.53tn in December 2024 to N7.09tn by September 2025.

The total reduction in outstanding loans of N1.438tn represented a decline of about 16.9 per cent over the period.

Monthly figures from the CBN show the drop in credit began in January 2025, with lending falling to N8.31tn from N8.53tn in December 2024. By February, credit decreased further to N8.03tn.

In March 2025, manufacturing credit declined again to N7.72tn. There was a brief increase in April when outstanding credit rose to N7.90tn, followed by modest fluctuations in May, June, July, and August.

By September 2025, credit levels returned to N7.09tn, matching the lowest figure recorded in June.

The CBN data indicate that credit contraction continued even after short periods of recovery, leaving the sector with lower bank financing by the end of the review period.

Central Bank figures show that the Monetary Policy Rate, which influences lending costs, stood at about 27 per cent over the period under review.

Commercial bank lending rates for manufacturers were reported to range from the mid‑20 per cent to low‑30 per cent bands, with some institutions quoting higher ceilings