Nigerian Manufacturers' Unsold Goods Rise to N1.77trn

In Q1 2026, manufacturing companies listed on the Nigerian Exchange Limited (NGX) reported unsold inventories of approximately N1.77 trillion, marking a 10.6% year-on-year increase from N1.597 trillion in Q1 2025. The rise in unsold goods occurred alongside a 13.7% increase in the cost of sales, which reached N1.434 trillion, highlighting financial pressures on businesses and consumers.

The inventory build-up affected various sectors, including consumer goods and agriculture. Dangote Cement had the largest inventory at N703.58 billion, a 4.8% increase from the previous year.

UACN experienced a significant rise of 231.8% to N189.55 billion. Other notable increases included Okomu Oil Palm (90.3%), Livestock Feeds (35.9%), and PZ Cussons (29.7%).

Conversely, some companies like Northern Nigeria Flour Mills and NASCON Allied Industries saw declines in their inventories. Analysts warn that the trend of rising inventories and costs could pressure gross margins unless manufacturers adjust prices or improve efficiency.

Fiona Ahimie, President of the Chartered Institute of Stockbrokers, attributed the inventory rise to supply and demand factors.