Nigeria’s manufacturing backbone is buckling under inflationary strain, with the Manufacturers Association of Nigeria (MAN) reporting a 87.7% rise in unsold goods — from ₦1.14 trillion in 2023 to ₦2.14 trillion in 2024.
Director-General Segun Ajayi-Kadir said the surge reflects collapsing consumer power as households spend over 70% of their income on transport and energy.
Factories Without Buyers
Rising input costs, naira devaluation, and energy scarcity have combined to choke profitability. Investment in industrial assets fell to ₦658.8 billion in 2024 — down 35% year-on-year — while capacity utilization dropped below 50%.
Ajayi-Kadir blamed poor government patronage, saying agencies “still prefer imported goods to Nigerian-made products.”
The Economic Domino
- Employment: Thousands of factory jobs lost since Q1 2025.
- Supply Chain: Overcapacity across FMCG, textiles, and automotive sectors.
- Exchange Rate: Weak naira erodes purchasing parity, deepening import reliance.
The Silent Recession
Nigeria’s manufacturing crisis has morphed into a stealth recession — invisible in GDP growth numbers but felt in shuttered warehouses. Unless fiscal and energy reforms translate into household liquidity, the sector could flatline before recovery takes root.
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