UK-backed programme raises $630m for 23 Nigerian manufacturers

Nigerian manufacturers are holding about ₦2.12 trillion worth of unsold goods, according to the Manufacturers Association of Nigeria (MAN). This figure, released on September 21, 2026, is attributed to weaker consumer spending and lower purchasing power among the population. Despite this challenge, manufacturers demonstrated record investment in 2025, pouring in ₦4.54 trillion – a 59% rise from the ₦2.85 trillion invested in 2024.

However, this surge in investment did not translate into a comparable rise in sales. Part of this investment was allocated towards expanding plants and machinery, with manufacturers spending ₦2.47 trillion in these areas during 2025. The food, beverage and tobacco sector saw the highest investment at ₦1.30 trillion, followed by non-metallic mineral products at ₦960.44 billion.

This disparity between investment and sales can be partly explained by the difference between nominal and real investment. While nominal investment shows the amount spent at current prices, real investment accounts for inflation. When adjusted for inflation, manufacturers' real investment in 2025 was about ₦1.33 trillion – a modest increase of 3.1% to ₦349.17 billion in plants and machinery.

The data reveals that manufacturers are still pouring resources into production, but many businesses are struggling to find enough customers to buy their products. The situation underlines the crucial link between consumer spending and the economy. When consumers have less disposable income, they tend to purchase fewer goods, leaving manufacturers with a backlog of unsold products.

This not only hampers businesses' ability to recover their production costs but also makes it harder for them to continue investing. The report from MAN underscores the challenges manufacturers face despite substantial investment in the sector. It also highlights that boosting investment alone does not ensure increased sales; strong consumer demand and a conducive economic environment are equally vital.

As Nigerian manufacturers continue to invest in production, the availability of locally purchased goods will remain a critical factor for the sector's performance.