Industry leaders are divided regarding the Central Bank of Nigeria’s decision to stop providing direct financing to the manufacturing sector. Dr. Chinyere Almona, Director General of the Lagos Chamber of Commerce and Industry, argued that this exit forces manufacturers to rely on commercial banks, which are not designed to offer the long-term credit necessary for industrial growth.
Almona noted that the lack of a suitable replacement for CBN intervention has made financing expensive and difficult for small and medium-scale enterprises. She advocated for the release of the N1 trillion Manufacturing Stabilisation Fund and suggested that the government should boost the Bank of Industry with credit guarantees while improving liquidity in the banking sector.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, echoed these concerns, noting that high government borrowing interest rates have pushed private businesses out of the credit market. He emphasized that manufacturers require low-interest, long-term loans for machinery and infrastructure rather than short-term bank facilities.
Conversely, Dr. John Isemede, a former Director-General of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, defended the CBN’s move. He suggested that the central bank should strictly limit its operations to monetary policy. Isemede believes that development finance should be handled by specialized institutions like the Bank of Industry, paired with a stronger fiscal strategy to encourage sustainable growth across the manufacturing value chain.
