BANKING & FINANCE
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Nigerian banks increased lending to trade and general commerce in the first half of 2026, while outstanding credit to manufacturers fell sharply, according to Nairametrics Research using Central Bank of Nigeria sectoral credit data. Average credit to trade rose 62.04% to ₦5.94 trillion, while manufacturing credit dropped 26.94% to ₦5.71 trillion, highlighting a clear shift in where bank financing is going.
Nigerian banks increased their exposure to traders and general commerce in the first half of 2026, while credit outstanding to manufacturers declined, according to Nairametrics Research based on Central Bank of Nigeria sectoral credit data.
The report said average credit to trade and general commerce rose by 62.04% year-on-year to ₦5.94 trillion in H1 2026, up from ₦3.66 trillion in H1 2025. Over the same period, average outstanding credit to manufacturing fell by 26.94% to ₦5.71 trillion from ₦7.81 trillion.
That means trade and general commerce attracted more average bank credit than manufacturing during the period covered by the data. The figures point to a notable change in bank lending patterns across key parts of the economy.
The research also showed that manufacturing’s share of total outstanding bank credit has been falling over time. It dropped from 16.43% in H1 2022 to 9.58% in H1 2026.
Across the wider economy, the data showed that 12 of the 17 sectors tracked recorded increases in outstanding credit, while five sectors posted declines. The brief did not provide a full sector-by-sector breakdown beyond the confirmed movement in trade and manufacturing.
The figures are based on sectoral credit data compiled by the CBN and analysed by Nairametrics Research. They show a broad expansion in bank lending to many sectors, but with manufacturing moving in the opposite direction during the first half of the year.
Why it matters
The shift matters because bank credit helps show where lenders see demand, turnover and lower risk, and where they may be pulling back. In this case, trade and general commerce gained strongly, while manufacturing lost ground both in naira terms and as a share of total bank credit.
Manufacturing is often watched closely because it connects to local production, supply chains and industrial activity. A sustained decline in bank credit to the sector could affect how much room manufacturers have to finance operations and expansion. The confirmed data does not explain the reasons for the change, but it shows a clear rebalancing of credit allocation.
What it means for your money
There is no direct personal-finance takeaway confirmed in the brief beyond the broader signal that banks are directing more lending to commerce than to manufacturing. For households and small business owners, it is mainly an indicator to watch rather than a confirmed change in retail banking terms or consumer loan conditions.
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What to watch next is whether later CBN sectoral credit data shows the same pattern continuing through the rest of 2026. It will also be important to monitor whether manufacturing’s share of total outstanding bank credit stabilises or keeps falling, and whether trade and general commerce maintains its lead in average bank lending.
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