Manufacturers Face N1.4tn Unsold Goods Amid Rising Costs
The Manufacturers Association of Nigeria (MAN) has reported a 12.9% increase in unsold inventory, rising from N1.24tn in the first half of 2024 to N1.4tn by the end of the year. At the 2025 Presidential Media Luncheon in Lagos, MAN President Francis Meshioye attributed this to declining consumer purchasing power caused by high inflation, which reached 34.6% in November 2024. This economic strain diminished demand for manufactured goods, leading to a buildup of unsold inventory. Meshioye highlighted additional challenges, including the devaluation of the naira—falling from N666/$ in mid-2023 to over N1,700/$ by mid-2024—which increased the cost of imported raw materials and machinery. The situation was further worsened by soaring interest rates of 27.7% and a 250% hike in electricity tariffs, which pushed up operating costs and hindered access to credit for expansion. These challenges caused the manufacturing sector’s contribution to Nigeria’s GDP to decline from 16.04% in Q4 2023 to 12.68% in Q2 2024. Meshioye urged the government to take swift action, including passing pending tax bills, reviewing electricity tariffs, addressing forex backlogs, and tackling inflation and infrastructure deficits. He also emphasized the role of technology, particularly artificial intelligence, in improving production efficiency and competitiveness. Despite the sector’s struggles, Meshioye expressed optimism about economic recovery, projecting a 4% growth rate in 2025 and stabilization of the naira between N1,500 and N1,650 to the dollar. He stressed the need for continued reforms to support the manufacturing sector and drive economic growth.
