Manufacturers’ Borrowing Reaches Five-Year Peak Amid Naira Devaluation
Story: Written by SpringnewsNG Media Limited
June 5, 2025 — Loans obtained by manufacturers have surged to their highest level in five years, driven largely by the persistent devaluation of the naira. The weakening local currency has significantly increased production costs, forcing many manufacturers to seek additional financing to sustain operations and import raw materials.
Industry analysts say the sharp rise in borrowing reflects both economic pressures and manufacturers’ efforts to stay afloat amid inflation and forex challenges. As the naira continues to lose value against major global currencies, manufacturers are grappling with higher debt servicing costs and reduced profit margins.
Economists warn that without policy reforms to stabilize the currency and support the industrial sector, the current borrowing trend could escalate financial risks and threaten long-term sustainability.
