Commercial bank credit to Nigeria's manufacturing sector has decreased by N1.92 trillion, attributed to funding gaps and high lending rates that are hindering access to finance for manufacturers, according to Punch.

The Manufacturers Association of Nigeria (MAN) has confirmed data from Vanguard Newspaper indicating a 22.5 percent decline in bank credit to manufacturers, amounting to N1.9 trillion. MAN expressed concerns that this decline could negatively impact industrial growth, increase unemployment, and hinder policy implementation, attributing the issue to high interest rates and policy gaps.

The Manufacturers Association of Nigeria (MAN) has criticized the average prime lending rates of 27 percent and maximum lending rates of 36.5 percent charged by major commercial banks as of May 2026, labeling them as exploitatively high for the manufacturing sector.

Nigeria's manufacturing sector reported a record remittance of N329.59 billion in Value Added Tax (VAT) for the first quarter of 2026, marking the highest quarterly contribution in four years, according to Punch.

According to a report by Omni, Nigeria's fast-moving consumer goods (FMCG) market has reached a value of $25 billion. However, only 18% of retailers in the sector have accessed formal credit. The report suggests that technology may play a crucial role in bridging this gap in financial access for retailers.

In the first quarter of 2026, Nigeria's manufacturing sector contributed significantly to government revenue, generating a total of N404.07 billion from Value Added Tax (VAT) and Company Income Tax (CIT). This included N329.59 billion from VAT and N74.48 billion from CIT, according to data from the National Bureau of Statistics (NBS).