Business
MAN confirms Vanguard Newspaper data showing N1.9trn decline in credit to manufacturers
•Lists key drivers, blame high rates, policy gaps
By Yinka Kolawole
THE Manufacturers Association of Nigeria, MAN, has raised concern over the data generated by Vanguard Newspaper showing that banks’ credit to manufacturers contracted by 22.5 per cent, a development the association warned could undermine industrial growth, worsen unemployment and weaken the implementation of the Nigeria Industrial Policy (NIP) 2025.
A Vanguard Newspaper data generated from the Central Bank of Nigeria, CBN, had indicated that banks’ credit to the sector declined by N1.92 trillion to N6.61 trillion in 2025 from N8.53 trillion in 2024.
The association, in a statement using the data, also identified high lending rates, restrictive banking regulations, the suspension of development finance interventions and policy implementation delays as key factors behind the decline in credit to the manufacturing sector.
In the statement, MAN Director-General, Segun Ajayi-Kadir, described the sharp decline in credit as a major setback to Nigeria’s industrialisation ambitions, noting that access to affordable financing remains critical to the survival and expansion of the manufacturing sector.
According to him, the contraction stands in sharp contrast to developments in other emerging economies where governments and financial institutions are deliberately expanding industrial financing. He noted that bank credit to industry in India grew by 9.6 per cent year-on-year in 2025, while Vietnam targeted credit growth of between 19 and 20 per cent to support manufacturing and processing activities.
Ajayi-Kadir identified the high cost of borrowing as the most significant obstacle preventing manufacturers from accessing available bank liquidity. He noted that average prime lending rates stood at about 27 per cent as of May 2026, while maximum lending rates had risen to 35.6 per cent, making long-term industrial investments increasingly unviable.
MAN also blamed the Central Bank of Nigeria’s stringent Cash Reserve Ratio (CRR), estimated at between 45 and 50 per cent for commercial banks, for limiting the volume of funds available for lending to productive sectors.
The association further expressed concern over the non-implementation of the proposed N1 trillion Manufacturing Stabilisation Fund, despite its inclusion in the Federal Government’s Accelerated Stabilisation and Advancement Plan (ASAP) in 2024. It argued that the delay has deprived manufacturers of a critical source of affordable financing needed to support production and expansion.
Another major factor, according to MAN, is the suspension of new applications under the CBN’s development finance programmes, including the Real Sector Support Fund (RSSF), which previously provided manufacturers with access to concessionary single-digit loans.
“The withdrawal of these interventions has forced manufacturers into the commercial lending market, where interest rates exceeding 35 per cent make productive borrowing almost impossible,” Ajayi-Kadir said.
MAN warned that the continued credit squeeze could depress capacity utilisation, delay technological upgrades, reduce manufacturing output and trigger job losses. It added that weaker domestic production could increase reliance on imports, place further pressure on foreign exchange reserves and undermine efforts to diversify the economy.
Business
Nigeria, 4 others launch new corridor Authority for $16bn Abidjan — Lagos highway
By Efe Onodjae
Nigeria and four other West African countries, Côte d’Ivoire, Ghana, Togo, and Benin Republic, have formally launched the Abidjan–Lagos Corridor Management Authority, a regional body established to oversee the development and future operation of the $16 billion coastal highway project linking major economic hubs across the region.
The authority will coordinate the management and operation of the planned 1,028-kilometre, six-lane expressway, which is expected to become one of West Africa’s most significant transport corridors when it becomes operational, projected for 2030.
Officials say the initiative is designed to improve cross-border transport efficiency, reduce logistics costs, and strengthen regional trade integration along the busy coastal economic axis.
The corridor is also projected to significantly expand commercial activity, with estimates suggesting it could generate around $16 billion in combined trade value across participating countries, alongside about $1.3 billion in toll revenues.
Alongside the highway project, participating governments are also exploring the future development of a parallel high-speed rail line to further enhance passenger and freight movement across the same corridor.
The project is part of broader regional efforts to deepen economic integration and improve infrastructure connectivity across West Africa, particularly along the densely populated and economically active coastal belt stretching from Abidjan to Lagos.
Business
70% of agric data in govt hands outdated — Survey
•As farmers, investors lack reliable information
By Cynthia Alo
A new study by the Nigeria Agribusiness Data and Investment Hub (NADIH), an initiative of Lagos Business School in partnership with Augmentum Advisory, has revealed that although government institutions control about 70 percent of agricultural datasets in Nigeria, much of the information is outdated and inadequate for farmers, investors and policymakers.
The findings were unveiled in Lagos, during the formal launch of the Nigeria Agribusiness Data and Investment Forum with the theme, “Building Decision-Grade Agriculture Data Systems in Nigeria: From Fragmentation to Coordination.”
Presenting the findings, the research team said fragmentation across institutions has weakened Nigeria’s ability to generate quality information needed for investment and policy decisions.
The report identified inadequate funding and manpower as major constraints to data collection, accounting for 56 percent of the challenges faced by data providers.
“No single source can anchor ongoing sustainability. As such, blended models are a necessary opportunity to coordinate across key ecosystem players for efficient resource allocation,” the team said.
In her welcome address, Dean and Professor of Information Systems at Lagos Business School, Prof. Olayinka David-West, said poor data quality continues to undermine investment decisions across the agricultural value chain.
“If somebody wants to invest in cassava and asks where to go and what infrastructure exists, we do not have those answers. Sometimes the data exists but it is already 10 years old,” she said.
However, reacting to the challenges outlined by the team, Lagos State Commissioner for Agriculture and Food Systems, Ms. Abisola Olusanya, said the country’s major problem is neither funding nor absence of data but the high level of informality within the food system.
Olusanya noted that many traders and market operators are reluctant to provide accurate information because they fear government interference and extortion.
“You can enter markets and collect names and phone numbers, but you may discover that more than half of the information given is incorrect because people are afraid of how the data will be used. People will only give accurate data when they see incentives and confidence in the system. Without that, we are simply on a wild goose chase,” she said.
She added, “We have politicised every sector. Even some people presented as farmers are political farmers. Many association leaders do not own farms, yet they head farmers’ groups because of the benefits attached to intervention programmes.”
Also speaking, a Director at the Federal Ministry of Livestock Development, Dr. Adeniji Adedeji, said the ministry is implementing a National Livestock Growth and Acceleration Strategy targeting growth of livestock’s GDP contribution to $74 billion over the next 10 years, with data and statistics as one of its core pillars.
He disclosed that the ministry recently developed a National Livestock Information Management System to warehouse and analyse livestock-related data for decision-making.
However, he noted that the ministry relies on data from state veterinary departments which has become increasingly unreliable, as disease surveillance officers across many states have retired without replacement.
He added that some state officials deliberately under-report data fearing it would reduce their share of federal allocations, while some development organisations collect data and take it out of the country without sharing with relevant authorities.
On his part, Statistician-General and Chief Executive Officer of the Kaduna State Bureau of Statistics, Dr. Baba Bukar, called for greater investment in sub-national data systems and wider adoption of technology tools such as satellite imagery and mobile data collection.
He said the value of such investment helped the state identify food insecurity hotspots in some of the local government areas, enabling the state government to direct resources based on evidence rather than political considerations.
Also speaking, Director-General of the Nigerian Agribusiness Group, Mr. Jafar Umar, said Nigeria has relied for too long on foreign-generated agricultural statistics, leaving investors without the reliable local information needed to make informed decisions.
He said the group is partnering with states to develop market-level transaction data that can support investment decisions and strengthen agricultural planning across the country.
Business
Stakeholders seek domestic investment to curb $2.1bn ceramic import
By Yinka Kolawole
Stakeholders in Nigeria’s ceramic industry have called for increased investment, innovation, stronger policy support and deeper collaboration to transform the sector into a major driver of industrialisation, job creation and economic diversification.
The call was made at the Nigeria Ceramic Investment Summit and Product Exhibition 2026 (NCISPE 2026), which brought together industry leaders, investors, researchers, entrepreneurs and development partners to explore opportunities for accelerating growth across the ceramic value chain.
Speaking at the summit, Convener of NCISPE 2026 and Professor of Ceramic Engineering, Engr. Eguakhide Patrick Oaikhinan, said Nigeria possesses enormous untapped potential in the ceramic industry but requires deliberate actions to unlock its economic value.
He disclosed that Nigeria is projected to import ceramics worth about $2.1 billion in 2026, underscoring the urgent need to strengthen local production capacity and reduce dependence on imports.
According to him, strategic investments, supportive government policies, innovation and sustained collaboration are critical to building a globally competitive ceramic industry capable of contributing meaningfully to national development.
He stated: “The opportunities before us are enormous, and the responsibility to seize them belongs to all of us. The transformation of Nigeria’s ceramic industry cannot be achieved by any single stakeholder. It requires the collective efforts of government, industry, academia, financial institutions, development partners, investors, technology providers, entrepreneurs and civil society.”
He expressed optimism that stronger collaboration between public and private sector stakeholders would accelerate the development of the ceramic industry and position it as a key contributor to Nigeria’s economic diversification agenda.
However, Oaikhinan expressed disappointment over the absence of some key government institutions at the summit, stressing the need for greater engagement among agencies responsible for mineral resource development, industrial policy, research and development, export promotion and local manufacturing.
He stated: “It is important to place on record our disappointment that despite the strategic importance of this sector to Nigeria’s industrialisation agenda, the Federal Ministry of Solid Minerals Development, the Federal Ministry of Industry, Trade and Investment, the Federal Institute of Industrial Research, and the Nigerian Export Promotion Council were unable to participate in this landmark gathering.
“Their absence is particularly regrettable given the critical role these institutions play in mineral resource development, industrial policy, export promotion, research and development, value addition and the advancement of local manufacturing.”
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