Unsold goods in manufacturing sector hit ₦1.04tn in H1 2025 — MAN

The Manufacturers Association of Nigeria (MAN) has revealed that the value of unsold goods in the manufacturing sector rose to ₦1.04 trillion in the first half of 2025, a 16.05% increase from ₦896.2 billion recorded in the second half of 2024.

The association described the surge as worrisome, linking it to weak government patronage of locally made products and persistent economic challenges that continue to hinder industrial productivity.

MAN’s Director-General, Segun Ajayi-Kadir, disclosed the figures in Lagos during the presentation of the Q3 2025 Manufacturers CEO’s Confidence Index (MCCI) and the 2025 MAN Think Tank Report, alongside the Director of Research and Economic Policy, Dr. Oluwasegun Osidipe.

Ajayi-Kadir said the accumulation of unsold inventory underscores low consumer demand and weak enforcement of local content policies.

“Low patronage by government agencies remains one of the biggest challenges for manufacturers,” he said. “Despite repeated calls for public institutions to prioritise made-in-Nigeria products, compliance remains poor.”

He identified other key challenges as unstable power supply, high exchange rates, forex scarcity, multiple taxation, and poor infrastructure.

According to the report, capacity utilisation improved to 61.3% in H1 2025 from 57.6% in H2 2024, while manufactured exports surged to ₦803.8 billion in Q2 2025 from ₦294.4 billion in Q1.

Despite this, real output growth slowed from 1.69% in Q1 to 1.6% in Q2, with the sector’s contribution to GDP declining to 7.81% from 9.62%.

Manufacturers spent ₦676.6 billion on alternative energy and ₦1.72 trillion on imported raw materials during the period, while 18,935 jobs were lost due to high costs and limited access to affordable credit.

The average lending rate stood at 36.6%, with total credit access declining to ₦7.72 trillion.

Ajayi-Kadir urged the government to address rising energy costs, ease access to foreign exchange, and expand credit to manufacturers, warning that the sector’s modest recovery remains fragile.

“Growth cannot thrive where capital is prohibitively expensive. The Central Bank must lower rates to stimulate investment,” he said.

Dr. Osidipe noted a slight improvement in manufacturers’ confidence, with the MCCI score rising from 50.3 to 50.7 points in Q3 2025, reflecting cautious optimism amid exchange rate stability and easing inflation.

He added that while six industrial groups, including plastics, electronics, food and beverages, and textiles, reported improved performance, others faced setbacks due to energy costs, high import duties, and weak government support.

MAN President, Francis Meshioye, urged the government to act swiftly on industrial reforms and implement recommendations from the association’s Think Tank.

“Manufacturing is the heartbeat of sustainable recovery. No economy prospers on consumption alone,” he said.

MAN reiterated its call for a private sector–driven Nigeria Industrial Policy and “Nigeria First” initiative to align government reforms with industry realities.

The group also urged the government to boost oil production, stabilise the exchange rate, and prevent industrial disruptions in the energy sector to sustain macroeconomic stability.

Ajayi-Kadir concluded, “currency stability is not just a macroeconomic metric; it reflects national resolve.

“To secure the gains of stabilisation and accelerate prosperity, Nigeria must make manufacturing the nucleus of its growth strategy.”