₦airaland Forum

By Godsent Ogbebor

The Manufacturers Association of Nigeria (MAN) has disclosed that the value of unsold manufactured goods surged by 12.9%, rising from ₦1.24 trillion in the first half of 2024 to an unprecedented ₦1.4 trillion by the year’s end.

Speaking at the 2025 Presidential Media Luncheon in Lagos on Wednesday, MAN President Francis Meshioye attributed the rise to declining consumer purchasing power caused by high inflation and other economic challenges.

“The manufacturing sector in 2024 faced a myriad of macroeconomic and infrastructural challenges that severely impacted its performance,” Meshioye said.

He noted that inflation climbed to 34.6% by November 2024, significantly reducing demand for manufactured goods. Additionally, the naira’s sharp devaluation from ₦666/$ in mid-2023 to over ₦1,700/$ by mid-2024 exacerbated the situation by inflating costs for imported raw materials and machinery.

High-interest rates, which reached 27.7% in late 2024, further hampered manufacturers’ access to credit for expansion and modernization. A 250% hike in electricity tariffs added to the sector’s challenges, forcing many businesses to explore costly alternative energy sources.

The tough economic environment led to a drop in the sector’s contribution to Nigeria’s Gross Domestic Product, which fell from 16.04% in Q4 2023 to 12.68% in Q2 2024, according to Meshioye.

Meshioye called for urgent government intervention to address the issues plaguing the manufacturing sector. Key recommendations include the passage of tax-related bills in the National Assembly, a review of electricity tariffs, and the clearance of foreign exchange backlogs.

He also emphasized the need for policy consistency and infrastructure investment to improve the sector’s productivity and competitiveness.

Despite the challenges, the MAN president expressed optimism for the sector’s future, citing the potential of technology, including artificial intelligence, to enhance capacity utilization and streamline operations.

With a projected economic growth rate of 4% in 2025 and a more stable exchange rate forecast of ₦1,500–₦1,650 to the dollar, Meshioye urged the government to continue implementing reforms to stabilize the economy and support manufacturing recovery.

“The path to growth is clear,” Meshioye said. “Improving productivity and enhancing competitiveness must remain priorities to ensure Nigerian manufacturers successfully navigate these challenges.”

Although, MAN had earlier reported a sharp increase in unsold inventories during the first half of 2024, attributing the rise to inflation, subsidy removal, and naira devaluation.