Nigerian deposit money banks disbursed a total of N60.35tn in credit to the manufacturing sector in the first nine months of 2025, a 20.44 per cent decline from the N75.86tn recorded in the corresponding period of 2024, The PUNCH has found.

An analysis of the Central Bank of Nigeria’s Quarterly Statistical Bulletin for the third quarter of 2025 indicated that lending to manufacturers slowed significantly during the period, reflecting the tight credit conditions the sector faced amid elevated borrowing costs.

Manufacturers have long called for a deeper rate cut that “can meaningfully lower the cost of credit and stimulate real sector investment”, as the apex bank gradually eased the interest rate benchmark.

The data showed that banks extended N60.35tn to manufacturers between January and September 2025, down from N75.86tn in the same period of 2024.

Monthly disbursement in 2025 revealed that January (N8.31tn) and February (N8.03tn) recorded the highest credit allocations to the sector.

On the other hand, September (N7.09tn) and June (N7.09tn) posted the lowest disbursements during the period.

In 2024, however, credit flows were significantly stronger. The highest disbursements were recorded in February (N10.88 tn) and January (N10.02 tn), while the lowest allocations were in September (N8.67 tn) and March (N8.70 tn).

Further analysis showed that the average monthly credit to manufacturers dropped to approximately N6.71tn in 2025, compared to approximately N8.43tn in 2024, signifying the tightening financial conditions that constrained industrial financing.

The 20.44 per cent decline came despite recent monetary policy easing by the apex bank. After maintaining a tight stance for years, the CBN made its first interest rate reduction in five years in 2025, cutting the Monetary Policy Rate by 50 basis points to 27 per cent from a historic high of 27.5 per cent.

In February 2026, the Monetary Policy Committee again reduced the benchmark interest rate by 50 basis points to 26.5 per cent, signalling the start of a gradual easing cycle.

Private sector groups have welcomed the signal which the easing came with while staying cautiously optimistic for a real impact. In an interview with The PUNCH, the Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said the interest rate reduction could stimulate the real sector if banks transmit the lower policy rate to borrowers.

“The Monetary Policy Committee of CBN announced the reduction of the benchmark interest rate by 50 basis points from 27 per cent to 26.5 per cent at the end of the committee’s 304th meeting, held on 23 and 24 February 2026. Although the 50 basis points cut looks inconsequential, the implication for the economy, especially in the manufacturing sector, is significant,” Ajayi-Kadir said.

He noted that the benefits of the policy shift would depend on the willingness of banks to pass the lower rates to businesses and the stability of key macroeconomic indicators.

Ajayi-Kadir stated, “Currently, the lending rates from the commercial banks hover around 32 per cent to 37 per cent. A reduction in the Monetary Policy Rate by the Central Bank of Nigeria will have positive impacts on the real sector through several key channels, including lower borrowing costs for businesses, increased investment and employment, expansion of SMEs, increased demand for locally produced goods and stimulation of economic growth.”

MAN had earlier urged the apex bank to adopt more aggressive easing to support industrial growth. “The time has come for the apex bank to take a bolder step by introducing a deeper rate cut that can meaningfully lower the cost of credit and stimulate real-sector investment. Growth cannot thrive where capital remains prohibitively expensive,” the association stated in its Manufacturers CEO’s Confidence Index report for the third quarter of 2025.

MAN is not alone in holding the position that executing more actions to improve the flow of easing interest rates is necessary. The Centre for the Promotion of Private Enterprise has called for improved transmission of the MPR easing at the level of commercial banks.

The Chief Executive Officer of the CPPE, Dr Muda Yusuf, said in a policy document that the gradual interest rate easing cycle could improve investor sentiment and support credit expansion in the economy.

“This policy direction is appropriate and growth-supportive. It reflects improving macroeconomic fundamentals and reinforces confidence in the economy’s stabilisation trajectory,” Yusuf said.

He, however, warned that structural challenges within the financial system could limit the impact of the policy easing. “A major concern remains the weak transmission mechanism between monetary policy adjustments and actual lending rates in the real economy. Despite reductions in the MPR, lending rates to businesses remain elevated due to structural factors including high cash reserve ratio, elevated cost of deposits, risk premiums and crowding-out effects from government borrowing,” Yusuf added.

He stressed that unless these constraints are addressed, the benefits of lower policy rates may not translate into cheaper credit for manufacturers and other productive sectors.

Industry stakeholders have repeatedly argued that high interest rates, alongside rising energy costs, logistics bottlenecks and exchange rate volatility, have constrained production and investment across the country’s manufacturing sector.

The Managing Director of 11Plc, Mr Adetunji Oyebanji, will retire from the company after 45 years of service.

The development was contained in a notice signed by the Company Secretary and addressed to NASD Plc and the investing public, dated March 3, 2026. The retirement will take effect from March 31, 2026, after over 45 years of dedicated service to the organisation.

The Board of Directors of 11Plc expressed its profound gratitude to Oyebanji for his leadership and invaluable contributions to the company and wished him the best in his future endeavours.

Adetunji Oyebanji was appointed Chairman and Managing Director of then Mobil Oil Nigeria Plc in October 2008 and, following the divestment of ExxonMobil, became the Managing Director/Chief Executive Officer of 11Plc in April 2017.

The Board of Directors acknowledged Oyebanji’s remarkable career with the company, describing it as a testament to his unwavering commitment, passion, and expertise in the oil and gas industry.

He joined Mobil Oil Nigeria Plc in 1980 as a Marketing Representative Trainee and progressed through various leadership positions, demonstrating exceptional leadership and strategic vision. These include Planning Associate, Pricing Manager, District Manager, Branch Manager, Manager, Fuels Services, and Executive Director, Fuels.

His appointment as Managing Director/CEO in 2017 marked a significant milestone in his illustrious career, and he has steered the company through a period of significant transformation and growth.

Apart from his role in the company, Oyebanji has played significant roles in the oil and gas industry and the economy at large. He is currently the President and Chairman of the Council of the Chartered Institute of Directors, Nigeria.

He was a past Chairman of the Major Energy Marketers Association of Nigeria, as well as the Petroleum Downstream Group of the Lagos Chamber of Commerce and Industry. He was also a past Council member of the Nigerian Institute of Management and the LCCI. He was a board member of the Society for Corporate Governance, Nigeria, for over 10 years.

Oyebanji’s career extended well beyond Nigeria’s shores. He served at various points in his career as a Project Associate at Mobil Oil Corporation’s headquarters in Fairfax, Virginia, United States, as well as Manager, Planning of Mobil Africa Sales Inc.

He also served as an Executive Director at Mobil Oil Cameroon and later at Mobil Oil Ethiopia. Eventually, he took on a global leadership role as Manager, Industrial and Wholesale Fuels, Africa and the Middle East, based in Belgium and reporting functionally to the Global I&W Manager.

The Board of Directors thanked Oyebanji for his tireless efforts and dedication to 11 Plc and wished him a happy and healthy retirement. The board also appreciated his contributions to the company’s success and said it was grateful for his legacy, which will continue to inspire future generations

NIPCO Gas Limited has announced that it is constructing 20 additional compressed natural gas stations across Nigeria as part of efforts to deepen gas utilisation and support the Federal Government’s clean energy and post-subsidy reform agenda.

The Managing Director of NIPCO Gas Limited, Nagendra Verma, disclosed this during a media engagement held recently at his office in Lagos, where the company outlined its ongoing expansion initiatives within Nigeria’s evolving energy landscape.

“Aligned with the Federal Government’s clean energy and post-subsidy reform agenda, NIPCO Gas Limited, in a joint venture with NGML, is currently constructing 20 additional Compressed Natural Gas stations across Nigeria,” Verma stated.

He added that the expansion also includes the development of strategic compression hubs to support distribution nationwide. According to him, the nationwide rollout is designed to improve access to gas-powered mobility infrastructure along critical routes and urban centres.

Verma elaborated, “In addition, CNG mother stations located at Lekki and Ore are at advanced stages of completion.

These facilities will serve as primary compression and dispatch hubs, enabling the efficient supply of CNG to daughter stations and industrial customers across various regions.

“The nationwide expansion is strategically designed to ensure broader coverage along key transport corridors and high-traffic urban centres, thereby improving accessibility and affordability of CNG for commercial vehicles, fleet operators, mass transit systems, and private motorists.”

He explained that the company would leverage a network-based distribution model to extend supply beyond pipeline-connected locations.

“Through the mother-daughter network model, reliable gas supply will be extended to areas not directly connected to pipeline infrastructure,” he added.

Verma stressed that all facilities under development are being executed in line with regulatory and safety standards, adding that the expansion would have broader economic and environmental benefits.

“This expansion is expected to generate significant employment opportunities, reduce transportation fuel costs, stimulate enterprises within the mobility value chain, lower carbon emissions, and contribute to improved air quality,” he highlighted.

Emphasising the company’s wider commitment to Nigeria’s gas development agenda, Mr Verma said NIPCO Gas remains well positioned to advance energy security and sustainable growth through continued infrastructure investments.

Beyond the CNG rollout, the company is also expanding pipeline and distribution infrastructure in the South-West. Mr Verma disclosed that, pursuant to a mandate granted by the Nigerian National Petroleum Company Limited, NIPCO Gas Limited, in partnership with NNPC Gas Marketing Limited, is constructing an 18-inch, 80-kilometre natural gas pipeline from Sagamu to Ibadan.

He stated that the project is scheduled for completion by June or July 2026 and is expected to improve gas availability for industries and commercial consumers in Ogun and Oyo states, as well as adjoining areas.

“This critical infrastructure will enhance manufacturing competitiveness, reduce production costs for industries currently dependent on alternative fuels, and stimulate regional economic growth,” he asserted.

The firm is also developing gas distribution infrastructure from Sagamu to Abeokuta in Ogun State to deepen gas penetration within the South-West.

Lagos, Nigeria – March 2026 – Nigeria’s manufacturing sector suffered a sharp decline in foreign investment in 2025, even as total capital inflows into the country more than doubled, raising concerns about industrial growth and economic diversification.

According to the National Bureau of Statistics (NBS), total capital importation surged by 131.96% year-on-year, reaching $16.78 billion between January and September 2025, up from $7.23 billion in the same period of 2024. However, foreign investment in manufacturing plummeted by 54.11%, dropping to just $463.52 million—a mere 2.76% of total inflows.

Quarterly Volatility Highlights Investor Caution

The data reveals erratic trends:

Q1 2025: $129.92 million

Q2 2025: $261.35 million (brief rebound)

Q3 2025: $72.25 million (steep decline)

Meanwhile, overall capital inflows remained strong, rising from $6.01 billion (Q1) to $6.24 billion (Q2) before moderating to $4.53 billion (Q3).

Why Are Investors Avoiding Manufacturing?

Segun Ajayi-Kadir, Director-General of the Manufacturers Association of Nigeria (MAN), blamed structural bottlenecks, inflation, FX volatility, and poor infrastructure for the sector’s declining appeal.

“Foreign investors are wary of long-term manufacturing projects due to high operational risks,” he said. “Unstable power, costly logistics, port inefficiencies, and policy uncertainty make Nigeria less competitive compared to sectors with quicker returns.”

Economic Diversification at Risk

Analysts warn that Nigeria’s reliance on short-term portfolio flows (rather than productive FDI) threatens job creation and industrialization. Manufacturing is crucial for economic diversification, but dwindling investment could:

Stall expansion plans

Reduce capacity utilization

Weaken job growth

What Needs to Change?

Industry leaders urge urgent reforms:

Stabilize FX & Curb Inflation – Restore investor confidence with predictable policies.

Fix Infrastructure Gaps – Reliable power, transport, and port efficiency are critical.

Ensure Policy Consistency – Clear regulations and incentives for value-added production.

Lower Financing Costs – Affordable credit is essential for local and foreign-backed ventures.

The Bottom Line

While Nigeria attracts record capital inflows, the real challenge is channeling funds into factories—not just financial markets. Without decisive action, the manufacturing slump could deepen unemployment and stall economic transformation.

Petrol prices rose to N937 per litre on Tuesday amid escalating tensions in the Middle East, prompting oil marketers and refinery operators to urge the Federal Government to provide more crude oil to the Dangote Petroleum Refinery in naira to help stabilise domestic fuel prices.

The PUNCH reported on Monday that the Dangote refinery increased its gantry price from N774 to N874. The adjustment followed a jump in oil prices to $84 per barrel, up from below $70 days before the airstrikes involving the United States, Iran, Israel, and other countries.

“The new gantry price is now N874 per litre from N774. The review became necessary due to changes in global crude fundamentals and replacement costs,” an official of the Dangote refinery said.

Following the increment, filling stations on Tuesday raised their pump prices to N937 or N935, depending on the location. A survey by our correspondents confirmed that an MRS filling station in Obalende, Lagos, sold petrol at N937 on Tuesday.

The MRS and Petrocam stations in Mowe, Ogun State, dispensed petrol at N935, while Heyden offered N930. Similarly, SAO, SGR, and AP sold the product at N925. Matrix also dispensed the fuel at N937.

Before the Middle East crisis, some filling stations had already been selling premium motor spirit at prices ranging between N812 and N839, depending on the location. However, the crisis over the weekend disrupted the global fuel market, affecting Nigeria and other countries.

Reacting in a statement on Tuesday, the Petroleum Products Retail Outlet Owners Association of Nigeria emphasised the urgent need to consolidate and strengthen Nigeria’s domestic refineries, particularly the Dangote refinery, through the provision of adequate and consistent crude oil supply in naira.

According to PETROAN’s spokesperson, Joseph Obele, this “proactive approach” is essential to minimising the impact of external geopolitical shocks on the nation’s petroleum market.

The National President of PETROAN, Billy Gillis-Harry, expressed deep concern over the ongoing military escalation involving the United States, Iran, Israel, and allied nations, and its far-reaching implications for the global energy industry, particularly Nigeria’s petroleum sector.

According to him, recent geopolitical tensions have significantly disrupted global energy markets and supply chains.

PETROAN noted that hostilities in the Middle East, especially around the strategic Strait of Hormuz, through which approximately 20 per cent of the world’s crude oil supply passes daily, have triggered sharp volatility in international oil prices and heightened uncertainty regarding supply continuity.

It added that as the conflict intensified, global crude oil benchmarks had surged, with analysts projecting that prices could exceed $100 per barrel if disruptions persist, noting that the upward trend reflected growing concerns over potential supply shortages should shipping activities through the Strait of Hormuz remain restricted.

PETROAN stated that any sustained increase in crude oil prices would inevitably be reflected at petroleum retail outlets across Nigeria. “If the crisis continues, the impact will extend beyond pump prices to affect foreign exchange stability, domestic fuel pricing structures, and overall inflation levels within the country,” Gillis-Harry warned.

The association urged the Federal Government to encourage and prioritise local refineries by ensuring a steady crude oil supply in naira, particularly to the Dangote refinery, and by creating enabling policies that support optimal operations.

PETROAN also called on the government to sustain and strengthen the Naira-for-Crude policy to reduce pressure on foreign exchange and stabilise domestic fuel pricing.

“In view of these developments, PETROAN calls for urgent and strategic actions to safeguard Nigeria’s energy security: encourage and prioritise local refineries by ensuring a steady crude oil supply in naira, particularly to the Dangote refinery, and create enabling policies that support optimal operations. Sustain and strengthen the Naira-for-Crude policy to reduce pressure on foreign exchange and stabilise domestic fuel pricing.

“Urgently revamp the four government-owned refineries to restore them to full operational capacity and reduce dependence on imported petroleum products. Monitor global market developments and respond proactively to emerging risks. Advocate policies that strengthen domestic refining capacity and reduce reliance on imports. Support measures aimed at shielding consumers from excessive fuel price shocks,” the statement stated.

Skyway Aviation Handling Company Plc has strengthened its operational capacity with the acquisition of new ultra-modern Ground Support Equipment aimed at improving aircraft handling efficiency across Nigerian airports.

The company’s Public Relations Officer, Mrs Adetola Uansohia, said the investment underscores its commitment to safety, faster turnaround times, and world-class service delivery to airline partners operating within and outside the country.

As part of the upgrade, SAHCO said it took delivery of a high-tech Goldhofer F300 pushback tractor, manufactured by Goldhofer, a globally recognised German ground support equipment producer.

The Goldhofer F300, powered by a heavy-duty diesel engine, is designed to handle most wide-body aircraft and is built with rugged materials suited to Nigeria’s operating terrain and already deployed to one of SAHCO’s hub stations to bolster ramp operations.

In addition, the ground-handling firm also announced the procurement of five Ground Power Units manufactured in France by Guinault, a respected global aviation equipment manufacturer. Each unit delivers 45kVA at 115 volts and 28V DC output, providing stable electrical power to aircraft systems while on the ground.

The official explained, “The GPUs are powered by fuel-efficient gasoline engines and engineered for durability, portability, and optimal ramp performance.

“This investment reflects our unwavering commitment to operational excellence. The new equipment will significantly enhance safety standards, reduce aircraft turnaround time, and improve service reliability for our airline partners”.

She further explained that the advanced GPUs are capable of supporting most Class A aircraft and selected Class B aircraft, making them suitable for high-traffic airport environments. “Their compact design reduces fuel consumption while the rugged build guarantees long-term reliability and flexibility, especially in demanding operational conditions,” the official added.

SAHCO noted that the acquisition forms part of its broader strategy of continuous investment in cutting-edge technology to maintain leadership in Nigeria’s aviation ground handling sector. “We are intentional about staying ahead through equipment upgrades, technological advancement, and service innovation. Our goal is to consistently deliver world-class support to every airline we serve,” the company stated.

As the only aviation ground-handling company with an operational presence across all commercially operated airports in Nigeria, SAHCO said it remains focused on raising industry benchmarks through innovation and customer-focused solutions.