Nigerian manufacturers struggle as borrowing costs stay high
Manufacturers in Nigeria are facing borrowing costs of up to 60 per cent, despite recent monetary policy easing by the Central Bank of Nigeria. New data from the apex bank shows that while some banks offer lower prime lending rates, maximum borrowing costs remain elevated. Olayemi Cardoso and other industry leaders have highlighted the ongoing challenges for manufacturers, including high interest rates and reduced foreign investment. The gap between lending and deposit rates continues to put pressure on the sector.
TLDR
- Lending rates for manufacturers reach as high as 60 per cent, with Stanbic IBTC recording the highest rate.
- The Monetary Policy Committee of the CBN in February 2026 reduced the benchmark interest rate to 26.5 per cent after its 304th meeting.
- CBN data shows lending to manufacturing fell from N8.53tn in December 2024 to N7.09tn by September 2025, a 16.9 per cent reduction.
- Foreign investment in Nigeria’s manufacturing sector dropped by $654.43m year-on-year, falling from $1.43bn in 2024 to $772.45m in 2025.
- Industry leaders like Segun Ajayi-Kadir and Eke Ubiji warn that persistent high interest rates and macroeconomic challenges discourage long-term investment in manufacturing.
