According to the CBN’s February 2025 report, Nigerian banks slashed their manufacturing sector lending from ₦10.9 trillion in February 2024 to ₦8 trillion—a 26% year-on-year decline.
The trend extends to a month-on-month perspective: loans dipped from ₦8.529 trillion in December 2024 to ₦8.309 trillion in January 2025 (a 2.6% decline), then fell further to ₦8.0 trillion in February—a drop of 3.4% from January.
As a result, the manufacturing sector’s share of total private sector lending fell sharply from 17.7% in February 2024 to 13.9% by February 2025.
ALSO CHECK OUT: World Bank Says CBN Policies Could Cut Inflation to 22.1%
Background Context
This withdrawal follows a broader pattern of declining credit due to elevated interest rates. The Monetary Policy Rate (MPR) and lending rates have surged, discouraging manufacturers from borrowing.
Despite banks’ total lending reaching ₦57.94 trillion as of February 2025—a 1.12% dip from January—agriculture and industry segments saw modest growth, climbing by 4.66% and 4.98%, respectively. Yet the services sector experienced a 6.11% decline
