Nigerian Manufacturers Invest N4.54tn in 2025 as Unsold Goods Hit N2.12tn

Nigerian manufacturers invested a record N4.54 trillion in the economy in 2025, a 59% increase from the N2.85 trillion recorded in 2024, according to data from the Manufacturers Association of Nigeria.

The increase points to higher capital commitments by manufacturers despite difficult operating conditions. However, the data also shows growing pressure on consumer demand, with finished goods worth about N2.12 trillion remaining unsold during the year.

Investment in plants and machinery accounted for more than half of the nominal investment, reaching N2.47 trillion.

The food, beverage and tobacco sector recorded the highest investment at N1.30 trillion, followed by the non-metallic mineral products sector with N960.44 billion.

However, the nominal increase was significantly affected by inflation. In real terms, manufacturers’ investment stood at N1.33 trillion in 2025, while real investment in plants and machinery rose by only 3.1% to N349.17 billion.

Nominal investment measures expenditure at prevailing prices, while real investment adjusts for inflation and provides a clearer picture of changes in actual economic activity.

The data also points to significant inventory pressure in the manufacturing sector, as the value of unsold finished goods reached about N2.12 trillion.

Economist and consultant Nonso Iheoma said the buildup of unsold goods suggests manufacturers are producing goods that consumers are increasingly unable to afford at prevailing prices.

He said the situation could tie down manufacturers’ capital in finished products, while increasing pressure on working capital, storage costs and reliance on short-term financing.

Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, said the 2025 inventory figure was marginally lower than the N2.14 trillion recorded in 2024.

He said the food, beverage and tobacco sector accounted for more than 35% of total inventory, valued at N755.8 billion.

Ajayi-Kadir attributed the high inventory levels to what he described as a squeeze on Nigeria’s middle class, highlighting weak purchasing power as a continuing challenge for manufacturers.