February 09, (THEWILL) — Nigeria’s manufacturing sector is facing a growing inventory overhang, with manufacturers holding an estimated ₦1.8 trillion worth of unsold goods as weak consumer demand continues to weigh on sales.
Industry players say persistently high inflation has eroded household purchasing power, forcing consumers to cut back on spending and slowing turnover across both essential and non-essential products.
The situation has been worsened by rising production costs driven by foreign exchange volatility, higher energy prices and logistics challenges. Manufacturers say these pressures have limited their ability to reduce prices without further squeezing already thin margins.
As inventories rise, some firms are scaling back production and delaying expansion plans to manage cash flow pressures. Analysts warn that prolonged inventory build-up could negatively impact factory output, employment and investment in the sector.
Manufacturers are calling for policy measures to ease operating costs, improve access to foreign exchange and stabilise prices, noting that a recovery in consumer demand is key to clearing the backlog of unsold goods.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
