Nigerian Manufacturers Face N2.12tn in Unsold Goods

In 2025, Nigerian manufacturers invested a record N4.54tn in the economy, marking a 59% increase from N2.85tn in 2024, according to data from the Manufacturers Association of Nigeria (MAN). However, products worth N2.12tn remained unsold due to declining consumer spending.

Investment in plants and machinery accounted for over half of this nominal investment, totaling N2.47tn, with the food, beverage, and tobacco sector contributing N1.30tn. Despite the nominal growth, real investment adjusted for inflation was only N1.33tn, indicating that inflation significantly impacted the actual economic activity.

The unsold goods reflect a production capacity that is not translating into sales, leading to increased inventory pressure. Nonso Iheoma, an Abuja-based economist, noted that this situation ties up capital in finished goods, creating pressure on working capital and potentially forcing manufacturers to rely more on bank credit.

Segun Ajayi-Kadir, Director-General of MAN, acknowledged the challenges faced by manufacturers in balancing investment and market absorption.