Nigerian Manufacturers Defy Odds, Increase Borrowings Amid Challenges


Despite facing numerous challenges, the manufacturing sector in Nigeria witnessed a significant rise in borrowings from the nation’s banking sector. Data from the Central Bank of Nigeria (CBN) revealed that manufacturing sector borrowings surged by N2.17 trillion to N7.73 trillion in 2023, marking a substantial 38.8 percent increase from N5.57 trillion in 2022.

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This surge underscores the resilience of Nigerian manufacturers and their determined efforts to enhance industrial production despite adversities.

The CBN data further disclosed that the manufacturing sector ranked second in bank loan recipients in 2023, trailing only behind the oil and gas sector. Manufacturing sector borrowings accounted for 17.36 percent of the total banking sector credit.

Overall, total credit extended by banks to the economy witnessed a remarkable surge of 51.23 percent, soaring from N29.45 trillion in December 2022 to N44.54 trillion in December 2023.

In addition to the manufacturing sector, the oil and gas sector experienced significant lending, borrowing N5.19 trillion in 2023, with a total debt of N11.8 trillion. This represents a substantial 78 percent increase from the previous year’s total debt of N6.6 trillion, highlighting sustained investment in the sector amid global market volatility.

The finance, insurance, and capital market sector emerged as the third highest recipient of bank loans, witnessing a surge in lending with total borrowings reaching N4.33 trillion in 2023, up by 64 percent from N2.64 trillion in the previous year, underscoring its pivotal role in facilitating economic activities.

Other top borrowing sectors include trade and general commerce, which borrowed N1.33 trillion in 2023, marking a 60 percent increase from N2.21 trillion in 2022, and the information and communication sector, which borrowed N768.54 billion, witnessing significant lending with total borrowings amounting to N1.98 trillion in 2023, up by 64 percent from N1.21 trillion in 2022.

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