MAN Seeks N1 Trillion Stabilisation Fund as Manufacturing Credit Plunges by 22.5%
Nigeria’s manufacturing sector is facing mounting financial pressure after commercial bank credit to the industry fell sharply by 22.5 percent within a year, prompting the Manufacturers Association of Nigeria (MAN) to call for urgent government and regulatory intervention. The association revealed that credit to manufacturers declined from N8.53 trillion in December 2024 to N6.61 trillion in December 2025, representing a loss of N1.92 trillion and raising fresh concerns about the sector’s ability to sustain growth, investment, and job creation.
Describing the development as alarming, MAN said the manufacturing industry recorded one of the steepest declines in access to bank financing among major sectors of the economy. The association warned that banks appear to be directing more resources toward speculative ventures and less toward productive industries, leaving manufacturers struggling to secure the capital needed for expansion and operations. According to the group, the trend threatens the competitiveness of local industries and could further weaken Nigeria’s industrial base.
Speaking on the issue, MAN Director-General Segun Ajayi-Kadir identified the high cost of borrowing as the biggest obstacle confronting manufacturers. He noted that despite efforts by the Central Bank of Nigeria (CBN) to manage inflation through monetary policy adjustments, lending rates remain prohibitively high. With average prime lending rates hovering around 27 percent as of May 2026, many manufacturers find it increasingly difficult to finance long-term projects, modernize production facilities, or scale operations.
To address the challenge, MAN is urging policymakers to implement a series of reforms, including a reduction in the Monetary Policy Rate (MPR), a review of the Cash Reserve Ratio (CRR), and the immediate activation of the proposed N1 trillion Manufacturing Stabilisation Fund. The association argued that the fund, which has been part of the government’s Accelerated Stabilisation and Advancement Plan since 2024, could provide much-needed relief for businesses grappling with rising operational costs and expensive credit. MAN also called for more flexible lending requirements and a reassessment of collateral demands that often limit manufacturers’ access to financing.
Ajayi-Kadir further criticized the suspension of direct development finance programmes such as the Real Sector Support Fund, saying the decision has worsened financing conditions for manufacturers. Drawing comparisons with countries like India and Vietnam, where targeted credit expansion has helped strengthen industrial growth, he urged the CBN, commercial banks, and fiscal authorities to act swiftly. According to him, restoring affordable access to capital is essential to reversing the credit contraction, boosting production, attracting investment, and protecting jobs across Nigeria’s manufacturing sector.
source: Leadership