The Manufacturers Association of Nigeria (MAN) has reported an alarming accumulation of unsold goods valued at N1.4 trillion in 2024, attributing the situation to inflation and reduced consumer purchasing power.
Speaking at the 2025 Media Personality of the Year Award in Lagos, MAN President Francis Meshioye highlighted how inflation, which reached 34.6% by November 2024, significantly weakened demand for manufactured goods. This, combined with rising energy costs, a steep naira devaluation, and high borrowing rates, created a challenging environment for the sector.
Meshioye noted that electricity tariffs increased by over 250% during the year, making energy one of the highest expenses for manufacturers. Additionally, the naira’s depreciation—from N666/$ in mid-2023 to over N1,700/$ by mid-2024—exacerbated the cost of importing raw materials, further straining businesses.
Interest rates climbed to 27.7% by late 2024, further limiting manufacturers’ ability to secure financing for growth. The cumulative impact saw the manufacturing sector’s share of GDP drop from 16.04% in late 2023 to 12.68% by mid-2024.
Meshioye urged the government to address inflation, stabilize the exchange rate, promote local sourcing of raw materials, and provide better support for manufacturers.
