Nigeria’s manufacturing sector is grappling with a sharp build-up of unsold products, as inventories across major companies climbed to about ₦1.8 trillion, highlighting the impact of weakening consumer demand and mounting economic pressures.
An analysis of financial statements from leading manufacturers for the first nine months of 2025 shows that unsold goods rose from roughly ₦1.6 trillion recorded during the same period in 2024, representing an increase of nearly 19 per cent.
Industry experts attribute the inventory surge to declining purchasing power, high inflation, rising production costs, exchange-rate volatility and expensive credit, which have collectively reduced consumers’ ability to buy manufactured goods.
Among the firms most affected, Dangote Cement Plc recorded the largest volume of unsold inventory, valued at about ₦769.5 billion, up from ₦669.7 billion a year earlier. Nigerian Breweries Plc followed with inventories estimated at ₦224 billion, while Nestlé Nigeria Plc held unsold goods worth about ₦203.4 billion. Other companies, including BUA Foods, Lafarge Africa and Guinness Nigeria, also reported notable increases.
Raw material stockpiles have also expanded significantly, as manufacturers stock up to cushion the effects of foreign exchange instability and supply disruptions. Nigerian Breweries alone reported raw materials worth nearly ₦487 billion, compared with ₦407.2 billion in the previous year.
Analysts warn that the growing inventory burden is putting pressure on manufacturers’ cash flow, limiting production capacity utilisation and increasing operational risks. They note that unless consumer demand improves and structural challenges such as energy costs and access to foreign exchange are addressed, the sector could face deeper strain in the coming months.
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