By Charles Okonji
The Manufacturers Association of Nigeria (MAN) has stated that the inventory of unsold finished products in the manufacturing sector increased to N282.56 billion in the second half of 2022 up from N169.75 billion recorded in the corresponding half of 2021; thus, indicating N112.81 billion or 66 percent increase over the period.
According to the Executive Summary Bi-Annual Economic Review, Second Half 2022, which was made available to the media, it also increased by N85.46 billion or 51 percent when compared with N187.1 billion recorded in the first half of the year.
The document reveals inventory of unsold goods in the sector totaled N469.66 billion in 2022 ]as against N384.58 billion recorded in 2021.
The second half reports of MAN showed that high inventory recorded in the period was attributed to low purchasing power in the economy occasioned by declining real income of household following the continuous increase in inflationary pressures in the country.
“This is worsened by the Naira Redesign policy which began in the last quarter of 2022. The withdrawal of large amount of the ‘old Naira’ without commensurate replacement with the ‘new notes’ resulted to cash crunch in the economy with very limited means of purchasing items by households across the country,” MAN reports.
On manufacturing investments, the second half report pointed out that manufacturing sector investment dipped to ₦145.59 billion in the second half of 2022 down from N160.88 billion recorded in the corresponding half of 2021; thus, indicating N15.29 billion or 10 percent decline over the period.
The document revealed further declined by N32.8 billion or 18 percent when compared with N178.39 billion recorded in the first half of the year.
“Manufacturing investment totaled N323.98 billion in 2022 as against N305.02 billion recorded in 2021. Investment in the period was affected by the high debt profile of the Government which particularly deters foreign investment, high cost of borrowing, high cost of energy, low consumption during the period and many more,” MAN said.
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