By Aduragbemi Omiyale
The value of unsold finished products in the inventory of Nigerian manufacturers in the first half of 2023 increased by 44/9 per cent on a year-to-date basis to N272 billion from N187 billion in the same period of 2022.
This information was contained in the report released by the Manufacturers Association of Nigeria (MAN) on Tuesday.
According to Punch, the document also revealed that in the period under review, the manufacturing sector laid off 3,567 workers due to the harsh business environment triggered by high inflation, the foreign exchange (FX) crisis, and fuel subsidy removal.
“This increase in inventory can be attributed to a weakened purchasing power of the consumers, brought about by diminishing real household income resulting from the ongoing escalation of inflationary pressures, compounded by the scarcity of naira in the first quarter of the year and the aftermath of the subsidy removal,” a part of the report said.
The group stated that the weakening of the economy is already making businesses and foreign investors to be “increasingly wary of committing capital, thereby hindering economic growth and prospects for recovery.”
“The combined effect of these is the resultant higher inflationary pressure, which fuels the cost of production, reducing consumers’ purchasing power and having a greater impact on the manufacturers,” it added.
As for the job loss in the industry, the report noted that, “A total of 3,567 jobs were lost in the first half of 2023, indicating 1,855 more jobs lost when compared with the 1,709 jobs lost in the corresponding half of 2022, and 850 more jobs lost when compared with 2708 jobs lost in the last half of 2022.”
It further disclosed that employment generation in the manufacturing sector declined by 32.8 per cent to 6,428 in the first half of 2023 from the 9,559 jobs generated in the first half of 2022.
