Nigerian bank credit to manufacturing drops 34 percent despite major recapitalisation

Bank credit to Nigeria's manufacturing sector fell by 33.8 percent between December 2024 and August 2026, according to Businessday NG. Lending dropped from 8.53 trillion naira to 5.65 trillion naira during this period. The figures were presented by Tayo Aduloju, chief executive officer of the Nigerian Economic Summit Group, at the Chartered Institute of Bankers of Nigeria Fellowship Investiture Ceremony in Lagos on Saturday. [1]

Businessday NG reported that the steep decline in manufacturing credit occurred despite Nigerian banks raising 4.65 trillion naira through a recapitalisation exercise. The contraction raises serious concerns about whether stronger commercial bank balance sheets will actually lead to increased industrial growth for the economy. [1]

The manufacturing sector's share of total bank credit in Nigeria has dropped significantly. According to Businessday NG, the sector received 8.7 percent of total bank credit in August 2026, down from 17.4 percent recorded in December 2023. [1]

Manufacturing refers to the systematic fabrication and handcrafted production of goods from raw materials, a term that originated from Medieval Latin and entered the English language in the mid-16th century. [3]