- MAN revealed unsold goods in the manufacturing sector reached N1.4 trillion in 2024, driven by inflation and declining consumer purchasing power
- The manufacturing sector’s GDP contribution fell from 16.04% in Q4 2023 to 12.68% in Q2 2024 due to high operational costs
The Manufacturers Association of Nigeria (MAN) has revealed that unsold goods in the manufacturing sector reached N1.4 trillion in 2024.
At the 2025 Media Personality of the Year Award and Presidential Luncheon in Lagos, MAN President Francis Meshioye attributed the situation to inflation and declining consumer purchasing power.
He highlighted the numerous macroeconomic and infrastructural challenges faced by the sector in 2024.
Meshioye stated, “The manufacturing sector dealt with rising inflation, a depreciating Naira, soaring interest rates, increasing electricity tariffs, and low sales, among other issues.
These challenges strained profitability and reduced the sector’s contribution to the GDP.”
By November 2024, Nigeria’s inflation rate had surged to 34.6%, drastically reducing consumer demand for manufactured goods. This led to a buildup of unsold inventory, valued at N1.4 trillion across industries.
The president highlighted electricity costs as a major issue, noting a 250% tariff increase in 2024. Many manufacturers resorted to alternative energy sources, further burdening their financial capacity and affecting competitiveness.
Additionally, the depreciation of the Naira significantly impacted production costs. The exchange rate plummeted from N666/$ in mid-2023 to over N1700/$ by mid-2024, increasing the costs of importing raw materials and machinery.
Interest rates also climbed to 27.7% by November 2024, raising borrowing costs and hindering manufacturers’ ability to fund expansion and modernization projects.
The manufacturing sector’s share of GDP fell from 16.04% in Q4 2023 to 12.68% in Q2 2024. Meshioye attributed this decline to high operational costs, reduced consumer demand, and limited access to financing.
He warned that the rising costs and inflation were stifling investment opportunities, which could hamper the sector’s long-term growth.
To address these challenges, Meshioye proposed:
- Timely passage of the four tax bills before the National Assembly.
- Implement policies promoting patronage of made-in-Nigeria products.
- Efforts to control inflation and ensure food security.
- Local sourcing of raw materials and consistent policy implementation.
- Infrastructure upgrades, including roads and railways.
- Promoting energy security and reducing electricity tariffs.
“Manufacturing is central to Nigeria’s economic growth and development. A thriving manufacturing sector benefits the entire economy and improves citizens’ lives,” Meshioye emphasized.
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