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Nigeria's economic challenge is multifaceted. Manufacturers have reduced their bank loans by N1.44tn due to high interest rates, weak demand, and rising operating costs. The Central Bank of Nigeria's (CBN) high Monetary Policy Rate (27%) is making borrowing expensive for businesses. This has led to a decline in credit to the manufacturing sector, which fell to N7.09tn in September 2025, a 16.9% reduction from December 2024.
*Key Factors Contributing to the Economic Challenge:*
- _High Interest Rates_: Nigeria's interest rates are among the highest in the world, making borrowing costly for businesses.
- _Inflation_: The country's inflation rate is high, currently at 16.05% as of October 2025.
- _Dependence on Oil_: Nigeria's economy is heavily reliant on oil exports, making it vulnerable to fluctuations in global oil prices.
*Key Factors Contributing to the Economic Challenge:*
- _High Interest Rates_: Nigeria's interest rates are among the highest in the world, making borrowing costly for businesses.
- _Inflation_: The country's inflation rate is high, currently at 16.05% as of October 2025.
- _Dependence on Oil_: Nigeria's economy is heavily reliant on oil exports, making it vulnerable to fluctuations in global oil prices.
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