Nigerian manufacturers had about ₦2.12 trillion worth of finished goods that remained unsold, according to data from the Manufacturers Association of Nigeria (MAN).
The report, published on Monday, September 21, 2026, said the large amount of unsold goods was linked to weaker consumer spending and reduced purchasing power among Nigerians.
Despite the challenge, Nigerian manufacturers invested a record ₦4.54 trillion in 2025. This represented a 59 per cent increase from the ₦2.85 trillion invested in 2024.
However, the increase in investment did not lead to a similar increase in the amount of goods that consumers were able to buy.
The report explained that part of the investment went into plants and machinery. Manufacturers invested about ₦2.47 trillion in these areas during 2025.
The food, beverage and tobacco sector recorded the largest investment, with about ₦1.30 trillion. The non-metallic mineral products sector followed with about ₦960.44 billion.
One important reason for the situation is the difference between nominal and real investment. Nominal investment shows how much money was spent at the prices of the time, while real investment adjusts the figures for inflation.
When inflation is considered, manufacturers’ real investment was about ₦1.33 trillion in 2025. Real investment in plants and machinery increased by only 3.1 per cent to ₦349.17 billion.
The figures show that Nigerian companies are still putting money into production, but many businesses are facing difficulties getting enough customers to buy their products.
When consumers have less money available for spending, they may reduce the amount of goods they purchase. This can leave manufacturers with products in their warehouses for longer periods.
Large amounts of unsold goods can create problems for businesses because companies have already spent money producing the goods. If the products remain unsold, businesses may find it harder to recover their production costs and continue investing.
The situation also shows the connection between household spending and the wider economy. When consumers spend more, businesses generally have more opportunities to sell their products. When spending falls, manufacturers can face increased pressure.
The Manufacturers Association of Nigeria’s figures therefore highlight the challenges facing manufacturers despite the significant amount of money being invested in the sector.
The report also shows that increasing investment alone does not guarantee higher sales. Manufacturers also need strong consumer demand and an economic environment in which people and businesses can afford to buy goods.
The 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, the ability of consumers to purchase locally made goods will remain an important factor for the performance of the sector.
By: Oluwadare Precious
(Ripples)
