The Manufacturers Association of Nigeria (MAN) has reported a staggering accumulation of unsold goods totalling ₦1.4 trillion across industries in 2024.

The association’s President, Francis Meshioye, attributed the development to rising inflation and declining consumer purchasing power.

Speaking at the 2025 Media Personality of the Year Award and Presidential Luncheon in Lagos, Meshioye detailed the myriad of challenges faced by Nigeria’s manufacturing sector in 2024.

“These challenges included high inflation, a depreciating naira, rising interest rates, escalating electricity tariffs, low sales, multiple taxes and levies, and persistent security concerns,” he explained.

Meshioye noted that inflation soared to 34.6% by November 2024, significantly eroding consumers’ purchasing power and reducing demand for manufactured goods. “This inflationary burden led to an alarming build-up of unsold inventory,” he added.

Manufacturers also faced drastic increases in electricity tariffs, which rose by over 250%, making energy one of their highest operating costs. Many businesses sought alternative energy sources, further straining their finances and impacting competitiveness.

The naira’s depreciation, worsened by the floating exchange rate, further complicated operations. “The Naira fell from ₦666/$ in mid-2023 to over ₦1,700/$ by mid-2024, inflating the cost of importing raw materials and machinery,” Meshioye said.

Additionally, interest rates reached a historic high of 27.7% by November 2024, making borrowing prohibitively expensive and hindering manufacturers from financing expansions and modernisation.

He lamented the sector’s diminishing contribution to the nation’s GDP, which dropped from 16.04% in Q4 2023 to 12.68% in Q2 2024. “High operational costs, reduced consumer demand, and limited access to finance have collectively undermined growth,” he stated.

To mitigate these challenges, Meshioye urged the government to prioritise the timely passage of four pending tax bills before the National Assembly, enforce a policy of patronising made-in-Nigeria products, and address inflation.

He also called for enhanced food security, increased local sourcing of raw materials, consistent policies, infrastructure upgrades, energy security, and a downward review of electricity tariffs.

“Manufacturing is pivotal to sustaining Nigeria’s economic growth and development. A thriving manufacturing sector benefits the entire economy and improves the quality of life for Nigerians,” Meshioye concluded.