MANUFACTURERS INVEST N6.8TN DESPITE WEAK DEMAND

Investors committed about N6.8tn to Nigeria’s manufacturing sector between 2015 and 2025, even as weak consumer demand continued to affect businesses.

Data from the Manufacturers Association of Nigeria showed that annual investment in the sector increased from N489.6bn in 2015 to N1.33tn in 2025.

The increase in investment reflects continued efforts by manufacturers to expand production and strengthen their operations despite a difficult business environment.

However, rising inflation, currency depreciation and higher operating costs have reduced consumers’ purchasing power, making it harder for businesses to sell their products.

Manufacturers have consequently faced growing inventories as demand for locally produced goods remains below expectations.

The pressure on businesses has also contributed to the closure of more than 100 manufacturing companies over the past decade, according to the report.

Industry operators have continued to raise concerns about the cost of energy, raw materials, transportation and finance, all of which add to the cost of production.

The situation has made it increasingly difficult for manufacturers to maintain competitive prices while dealing with reduced demand from consumers.

Despite these challenges, the rise in investment shows that businesses continue to see opportunities in Nigeria’s large consumer market.

Manufacturers are also looking to improved economic conditions, stronger purchasing power and better infrastructure to support sustainable growth.

Industry stakeholders have therefore called for policies that can reduce production costs, improve the business environment and strengthen consumer purchasing power.

With investment continuing to flow into the sector, manufacturers are hoping that stronger consumer demand will eventually translate into higher production and improved business performance.