The Manufacturers Association of Nigeria (MAN) has reported that due to the profound macro-economic challenges in the country, inventory of unsold products surged by 357.57 per cent year-on-year to N1.24 trillion in H1’24.

MAN, in its Executive Summary of Half Year (H1) 2024 review of the economy made available to the press yesterday in Lagos, showed that the alarming increase was attributed to declining consumer purchasing power due to escalating inflation, subsidy removal, and the devaluation of the naira.

The Director-General of MAN, Mr. Segun Ajayi-Kadir, explained that the high level of unsold inventories reflected the challenges faced by consumers and the need for interventions to stimulate demand and improve the sector’s performance.

According to him, “the first half of 2024 was marked by significant challenges for Nigeria’s manufacturing sector, including high operational costs, declining consumer demand, and rising inflation.

“While some sectors showed resilience and growth, others struggled with declining production values, rising inventories, and reduced employment.” “The report underscores the urgent need for Nigeria to implement decisive and coherent economic reforms to address these challenges.

“Key areas of focus include enhancing policy consistency, improving the business environment, and fostering economic diversification.”

Ajayi-Kadir also said that “the success of these reforms will be crucial in reversing the current economic downturn, creating jobs, reducing inflation, and improving the overall welfare of Nigerian citizens.

“As the country navigates through these turbulent times, the resilience of its policy framework and the effectiveness of its economic management will determine the path forward.”

While speaking further on the economy, the MAN DG pointed out that “Nigeria’s economy continued to grapple with formidable challenges that have stymied its growth potential and eroded economic stability.

“The real GDP growth rate was sluggish, reflecting the country’s struggle to regain momentum amidst persistent economic and policy headwinds.

“Inflationary pressures intensified, significantly diminishing the purchasing power of Nigerians, with millions more being pushed into poverty due to the combined effects of soaring prices and stagnant wages. “The policy environment during this period was marked by uncertainty and turbulence.”