Nigerian manufacturers have unsold goods worth N2K.12tn

Nigerian manufacturers have ₦2.12 trillion worth of finished goods still unsold, according to data from the Manufacturers Association of Nigeria (MAN).

The report published on Monday, September 21 2026 stated that the large number of unsold goods was related to weakening consumer spending and reduced purchasing power of Nigerians.

Despite these challenges, manufacturing companies in Nigeria invested ₦4.54 trillion in 2025. This is a 59 percent increase from the investment of ₦2.85 trillion in 2024.

However, increased investment does not lead to a similar increase in the number of goods consumers can afford.

The report explains that some of the investment went into plant and machinery. Manufacturers are investing around ₦2.47 trillion in this area during 2025.

The food, beverage and tobacco sector recorded the largest investment, at around ₦1.30 trillion. The nonmetallic mineral products sector followed with around ₦960.44 billion.

One important reason for this situation is the difference between nominal and real investments. Nominal investment shows how much money is spent at current prices, while real investment adjusts for inflation figures.

If inflation is taken into account, real investment by manufacturers is about ₦1.33 trillion in 2025. Real investment in plant and machinery only increased 3.1 percent to ₦349.17 billion.

The figures show that Nigerian companies are still spending money on production, but many companies are facing difficulties in getting enough customers to buy their products.

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When consumers have less money to spend, they may reduce the number of goods they buy. This can make manufacturers store their products in their warehouses for longer periods of time.

Goods that are not sold in large quantities can cause problems for the business because the company has already spent money producing the goods. If products remain unsold, businesses may have difficulty recovering production costs and continuing to invest.

This situation also shows the relationship between household spending and the wider economy. When consumers spend more, businesses generally have more opportunities to sell their products. As spending declines, manufacturers will face increasing pressure.

Therefore, figures released by the Nigerian Manufacturers Association highlight the challenges manufacturers face despite the huge sums of money that have been invested in the sector.

The report also shows that increased investment alone does not guarantee higher sales. Producers also need strong consumer demand and an economic environment that allows people and businesses to be able to buy goods.

This development is an important issue for Nigeria’s manufacturing sector because manufacturing provides products, supports businesses and contributes to employment and economic activity.

As Nigerian manufacturers continue to invest in production, consumers’ ability to purchase locally made goods will remain an important factor for the sector’s performance.

By: Precious Oluwadare