The Manufacturers Association of Nigeria (MAN) has expressed concerns over the accumulation of unsold manufactured goods, which has reached a staggering N2 trillion. This development has exposed the depth of the demand and cost pressures confronting Nigerian manufacturers. According to MAN, the value of unsold inventory has historically fluctuated between N1.5 trillion and N2 trillion annually, depending on seasonal demand, product cycles, and demographic factors.
The persistence of high inventory levels amid rising investment raises questions about the ability of businesses to convert production into sales and replenish their capital. MAN data showed that unsold manufactured goods stood at N2.14 trillion in 2024 and about N2.12 trillion in 2025, even as investment in the sector rose significantly. This trend has been attributed to weak consumer purchasing power, high production and financing costs, energy challenges, and the influx of foreign goods.
The Director General of MAN, Segun Ajayi-Kadir, attributed the persistent accumulation of unsold goods partly to the influx of foreign goods, including counterfeit products, as well as genuine products manufactured in countries where production and borrowing costs are significantly lower than those faced by Nigerian manufacturers. He noted that the disparity in financing costs placed Nigerian manufacturers at a competitive disadvantage.
Ajayi-Kadir also identified declining disposable income among Nigerians as a major factor behind the accumulation of unsold goods. He expressed worry that the N70,000 minimum wage remained inadequate to meet rising living costs, thereby limiting consumers' ability to purchase locally manufactured products. The development comes amid continued cost-of-living pressures, with Nigeria's Consumer Price Index standing at 146.30 points in August 2026.
Elevated food and energy costs have forced households to devote a larger share of their disposable income to basic necessities, leaving less money available for manufactured goods. Ajayi-Kadir also cited logistics difficulties and insecurity as factors restricting manufacturers' ability to distribute products effectively across the country. Despite the difficult operating environment, manufacturers have continued to operate, with obligations to banks, employees, and other stakeholders.
However, Ajayi-Kadir cautioned against interpreting the continued survival of businesses as evidence of healthy resilience, saying declining profitability and erosion of capital were serious warning signs. He warned that continued erosion of manufacturers' capital could eventually force more companies out of business if corrective measures were not taken. The MAN chief stressed the need for manufacturers to pay greater attention to marketing and distribution.
Ajayi-Kadir urged Nigerians to patronise locally manufactured products and called for closer examination of the relationship between inflation and business inventory. He noted that changes in inventory levels could provide useful insight into the operating conditions facing businesses. The MAN chief also called for improved income levels, noting that consumer purchasing power directly affects the ability of Nigerians to patronise locally manufactured goods.
Key points
- Unsold manufactured goods in Nigeria have reached N2 trillion, with high production costs and weak demand affecting manufacturers.
- The influx of foreign goods and declining disposable income have contributed to the accumulation of unsold goods.
- Manufacturers have warned that continued erosion of capital could force more companies out of business if corrective measures are not taken.
