The Manufacturers Association of Nigeria has raised alarm over a 9.5 per cent decline in credit to the manufacturing sector, which dropped to N7.72tn as of March 2025 from N8.53tn recorded in December 2024. The association warned that the fragile recovery currently observed in the sector may collapse without urgent government intervention.
The findings were disclosed on Tuesday in Lagos during the presentation of the Third Quarter 2025 Manufacturers CEO’s Confidence Index report.
Director General of MAN, Segun Ajayi-Kadir, said the sector continues to grapple with high lending rates, foreign exchange challenges, and rising production costs. He noted that lending rates averaged 36.6 per cent, while unsold inventory climbed to N1.04tn during the period under review.
Ajayi-Kadir explained that although capacity utilisation improved from 57.6 per cent in the second half of 2024 to 61.3 per cent in the first half of 2025, the gains remain fragile.
“Our data show that the manufacturing sector is beginning to find its footing after a long period of turbulence. However, this recovery is fragile and could easily falter if we do not receive deliberate, industry-friendly interventions,” he said.
He called on the Federal Government to prioritise policies that lower energy costs, improve foreign exchange liquidity, and expand access to affordable credit.
According to MAN, manufacturing value added fell sharply to $25.36bn in 2024, down from $55.9bn in 2023, as firms struggled under inflationary pressure and volatile exchange rates. However, manufactured exports rose significantly to N803.8bn in the second quarter of 2025, up from N294.4bn in the first quarter.
The report also revealed that 18,935 jobs were lost in the first half of 2025 due to high input costs and currency pressures. Meanwhile, the Manufacturers CEO’s Confidence Index rose slightly from 50.3 points in Q2 to 50.7 points in Q3, signalling cautious optimism but still indicating weak overall business conditions.
MAN President, Francis Meshioye, described the recovery trend as gradual but emphasised that critical constraints must be addressed to sustain progress. He urged the Central Bank of Nigeria to deepen its recent interest rate cut to meaningfully reduce borrowing costs.
He also called for a private sector–driven industrial policy aligned with the Nigeria First Policy and the forthcoming National Industrial Policy.
The association noted improvements in sectors including Plastics, Electrical & Electronics, Food & Beverages, and Pharmaceuticals, while energy constraints, gas shortages, illegal imports, and weak government patronage affected others.
The MAN Think Tank report, presented by Dr. Oluwasegun Osidipe, called for improved pipeline security, strengthened local refining capacity, and disciplined tax enforcement ahead of the January 2026 tax reforms.
