The Manufacturers Association of Nigeria (MAN) has revealed that its members faced a deplorable economic environment in 2024, resulting in N1.4 trillion worth of unsold inventory across the manufacturing sector.
Speaking at the 2025 MAN Media Personality of the Year Award/Presidential Media Luncheon in Lagos on Wednesday, MAN President Otunba Francis Meshioye highlighted that inflation reached 34.6% by November 2024, significantly eroding consumers' purchasing power and reducing demand for manufactured goods.
The inflationary pressure further compounded the challenges faced by manufacturers, leading to substantial economic losses.
Meshioye, said at the same time, the floating of the exchange rate resulted in a steep depreciation of the Naira, which fell from ₦666/$ in mid-2023 to over ₦1700/$ by mid-2024.
This depreciation inflated the costs of imported raw materials and machinery, worsening the already strained profitability of manufacturers.
Interest rates he said reached unprecedented levels, climbing to 27.7 percent by November 2024.
This increase substantially raised borrowing costs, making it harder for manufacturers to access financing for expansion and modernization.
The rising interest rates, combined with inflation, severely limited the potential for investment in the sector, impeding long-term growth prospects.
Additionally, manufacturers were hit hard with a drastic rise in electricity tariffs, with rates increasing by over 250 percent, he said adding “This surge in energy costs became one of the highest operating expenses for businesses in the sector in 2024. As a result, many manufacturers sought alternative energy sources, further straining their financial resources and complicating their ability to remain competitive.”