Nigerian manufacturers were left with roughly ₦2.12tn in unsold finished goods during 2025, as elevated inflation and weaker household purchasing power dampened demand, according to figures released by the Manufacturers Association of Nigeria (MAN).
The accumulation of inventory occurred even as manufacturers injected a record ₦4.54tn into the economy over the year, a 59% increase from the ₦2.85tn recorded in 2024. Spending on plants and machinery represented more than half of nominal investment at ₦2.47tn. The food, beverage and tobacco segment invested ₦1.30tn, while non-metallic mineral products attracted ₦960.44bn.
Once inflation is stripped out, however, the picture narrows considerably. Real manufacturing investment stood at ₦1.33tn in 2025, while real investment in plants and machinery rose by only 3.1% to ₦349.17bn.
MAN noted that the food, beverage and tobacco sector bore the heaviest burden of unsold stock, accounting for more than 35% of the total at ₦755.8bn. The association attributed the pressure to the shrinking Nigerian middle class and declining consumer purchasing power.
Nigeria's average headline inflation was 23.33% in 2025 under the rebased Consumer Price Index series. Economists caution that prolonged holding of unsold goods can expose manufacturers to cash-flow strain, higher storage costs, and increased reliance on short-term borrowing.
