Nigerian businesses continue to face severe credit constraints even as inflationary pressures ease, highlighting a disconnect between macroeconomic stabilization and corporate liquidity.
The persistent shortage of available lending is exacerbating operational challenges for firms across the economy, particularly in the industrial sector.
3% year-on-year in May, marking its steepest decline in more than a year.
The impact on real economic activity is evident in recent production data.
Nigeria’s manufacturing sector contracted by 4.3% year-on-year in May, marking its steepest decline in more than a year.
This contraction underscores the enduring pressure on industrial output driven by elevated input costs and limited access to working capital.
The root of the financing gap lies in a structural shift within the country’s corporate financing landscape.