The Central Bank of Nigeria (CBN) has disclosed a significant decline in banks’ lending to the manufacturing sector, with a 26% year-on-year drop to N8 trillion in February, down from N10.9 trillion in the same period last year.
According to the CBN’s economic report for February 2025, this marks the second consecutive month of decline in banks’ lending to the manufacturing sector. The CBN reports that banks’ lending to the sector fell by 2.6% month-on-month to N8.309 trillion in January 2025, and by 3.4% to N8 trillion in February 2025.
As a result, the manufacturing sector’s share of total lending to the private sector has decreased to 13.9%, representing a 3.8 percentage point decline from 17.7% in February 2024. Furthermore, the sector’s share of total lending to the private sector dropped by 0.3 percentage points from 14.2% in January 2025.
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The CBN’s report also shows that total credit to key sectors of the economy decreased by 1.12% to N57.94 trillion in February 2025, down from N58.60 trillion in January 2025. The services sector experienced a 6.11% decline in credit flow during the review period. However, the agriculture and industry sectors received increased support, with credit growing by 4.66% and 4.98%, respectively. This indicates sustained policy support for food security and industrial growth.
In terms of sectoral distribution, the services sector maintained the largest share at 52.10%, followed by industry (42.49%) and agriculture (5.41%).
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