The Nigerian manufacturing sector is a critical part of the economy and contributes hugely to the Gross Domestic Product (GDP of the country. The state of the manufacturing sector is usually used to measure the health of the general economy because it determines the level of development of the economy.
However, analysts and stakeholders say that the sector does not get the required attention it deserves in the allocation of resources in the country, reports Daily Independent.
They posit that if the Nigerian economy must thrive and develop, the manufacturing sector must be given priority and a place of pride in economic decisions of the country.
According to the Nigeria Bureau of Statistics (NBS), manufacturers’ investment hit N4.5 trillion in 2025.
However, it also disclosed that weak demand left N2.1 trillion goods in warehouses. The body also disclosed that the increase in manufacturing sector investment in 2025 was wiped out by a disquieting accumulation of unsold goods as declining consumer purchasing power weakened demand.
Speaking on the issue, Comrade Saviour Iche, the national president of the National President and founder of the Association of Micro-Entrepreneurs of Nigeria (AMEN), said that the warehouses are full of unsold goods and products because Nigerians do not have the money to buy them.
“When people do not have enough money to spend, manufacturers face lower demand, reduced revenue, and difficulties sustaining their businesses. When consumers cannot afford products such as clothing, beverages, furniture, packaged foods, and household appliances, they reduce their purchases or switch to cheaper alternatives.
“As a result, Nigerian manufacturers sell fewer products, leading to lower turnover and reduced profitability.”
Iche stated that when demand falls, manufacturers may reduce the quantity of goods they produce to avoid accumulating unsold inventory, adding that factories may operate below capacity, machinery may remain idle, and production efficiency may decline.
He called on the federal government to take policy measures to change the situation by incentivizing manufacturing, adding that if the situation continues, the sector’s contribution to the economy will continue to dwindle, adding to a decline in the nation’s economy.
He also stated that the economic policies of the federal government have reduced the purchasing power of Nigerian consumers, adding that the government should introduce policies and programmes that will shore up productivity in the country.
On his part, the national president of the Association of Micro-Entrepreneurs of Nigeria (AMEN), stated that access to finance is a major challenge for manufacturers, adding that most manufacturers cannot access funds to engage in viable businesses with high interest rates. He charged the government to find a way to make finance affordable.
“Affordable means the government may need to become more innovative about creating different forms of development and finance institutions beyond the ones we have at the moment.
“If we look at what we have, we only have the Bank of Industry, which is strictly related to industry, and we have the Bank of Agriculture, strictly related to agriculture. You will notice that data shows that trading is the highest form of business at the moment.
“So, what happens to that sector? What kind of development finance institution takes care of that sector? What about the creative sector, what financial institution takes care of it? And on and on.
“So, we need the government to bring up more development financial institutions. Yes, we have the Development Bank of Nigeria, but the Development Bank of Nigeria, its capacity is so low compared to almost 40 million of MSMEs we have at the moment. So, it is just a drop in the ocean,” he stated.
Egbesola called the government to begin to work on creating markets for manufacturers in the country.
According to him, “The government is the biggest buyer of products and services. They have the capacity to buy more and they should buy from Nigerian companies. The Procurement Act says that Nigerian businesses should be able to access at least 40 percent of government buy-ins; that has not been the case.
“You can imagine if the federal government, state governments, and local governments purchase 40 percent of their buy-ins from local companies; 40 percent of their contracts, and all of that from SMEs. It would really help these companies to grow and thrive.”
However, Mr. Ayodele Olamide, a Lagos State-based manufacturer, said that made in Nigeria goods and products cost more than imported ones and Nigerians prefer to buy them,
He called on the government to take measures to reduce the cost of production by providing adequate and efficient power to businesses and households.
