Nigeria’s manufacturing sector is grappling with a surge in unsold goods and raw materials, signalling persistent pressures despite government claims of macroeconomic recovery. Financial results from leading manufacturers reveal that inventories of finished products and inputs continue to rise, reflecting ongoing inflationary, foreign exchange, and financing challenges that weigh on industrial output.
Data from the first nine months of 2025 (9M’25) show that combined inventories among major manufacturing firms climbed by 18.8 per cent, from N1.6 trillion in 9M’24 to N1.8 trillion. Raw materials stockpiles also increased by 15.4 per cent to nearly N1.5 trillion, highlighting companies’ efforts to hedge against volatile exchange rates, rising production costs, and tight monetary conditions.
Brandspur Business News reports that the inventory build-up was most pronounced among giants such as Dangote Cement Plc, which posted N769.5 billion, up from N669.7 billion the previous year. Nigerian Breweries Plc recorded N224 billion, Nestlé Nigeria Plc N203.4 billion, while Lafarge Africa Plc’s inventories rose to N117 billion. Other firms, including BUA Foods, Cadbury Nigeria, Guinness Nigeria, and International Breweries, also reported significant year-on-year increases.
Some manufacturers, however, achieved improved inventory positions. Dangote Sugar Plc’s stock declined slightly to N130.5 billion from N131.5 billion in 9M’24, while UAC of Nigeria Plc, NASCON Allied Industries, Unilever Nigeria, and Berger Paints recorded similar reductions, indicating selective inventory management strategies.
Raw materials inventories mirrored finished goods trends, with Nigerian Breweries Plc holding N486.9 billion worth of inputs, Dangote Sugar N450.7 billion, and Nestlé Nigeria N84 billion. In contrast, Dangote Cement’s raw materials declined to N255.2 billion from N299.8 billion, while Unilever, NASCON Allied Industries, Lafarge Africa, and Berger Paints recorded moderate reductions.
Industry experts attribute the inventory pressure to weak consumer demand, rising production costs, and continued reliance on imported inputs. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), said, “Eroded purchasing power and higher production costs are forcing manufacturers to hold more stock, which, coupled with weak sales, accumulates unsold inventories and raw materials.”
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Oluropo Dada, President of the Chartered Institute of Stockbrokers (CIS), noted that higher labour and input costs, alongside imported inflation, are driving working capital pressures, margin compression, and operational risks. Consumers are experiencing higher prices, reduced product variety, and smaller packaging as companies attempt to stay viable.
Ambrose Omordion, COO at InvestData Consulting, added that the rise in raw materials inventories raises questions about Nigeria’s backward integration policy, designed to reduce import dependence. “Persistent high raw materials stock indicates uneven progress and exposure to currency volatility,” he said.
David Adonri, Executive Vice Chairman of Highcap Securities Limited, emphasised that the disproportionate rise in inventory costs contradicts official claims that inflation moderated in 2025, noting the continued vulnerability of import-dependent firms to currency risk.
The growing stockpiles of finished goods and inputs pose risks to Nigeria’s industrialisation agenda, with potential consequences including low capacity utilisation, job losses, declining investor confidence, and reduced profitability. Experts advocate for enhanced local sourcing, cost restructuring, market segmentation, and innovative production strategies to stabilise operations and sustain industrial growth.
