The Manufacturers Association of Nigeria (MAN) says weakened purchasing power of Nigerians in the first half of 2023 pushed up the inventory of unsold finished products to N271.96 billion.
MAN in its half year report on ‘Half Yearly Review of the Economy (January – June 2023) said the figure is N48.88 billion representing a 45.4 per cent growth compared to N187.08 billion recorded during the same period in 2022.
MAN’s Director General Segun Ajayi-Kadir, noted that the decline in the purchasing power of Nigerians is due to diminishing real household income as a result of inflationary pressures.
The National Bureau of Statistics in its inflation report for August stated that headline inflation jumped to 25.80 per cent. The figure is 1.72% points higher than the 24.08% reported in July. Analysts say the scarcity of the naira and the petrol subsidy removal further aggravated the situation.
“Consequently, both businesses and foreign investors are growing increasingly cautious about committing capital, thereby impeding economic growth and the prospects for recovery.
“The collective impact of these factors is an upsurge in inflationary pressures, which inflates production costs, diminishes consumers’ purchasing power, and exerts a significant influence on manufacturers,” remarked Ajayi-Kadir.
