The Manufacturers Association of Nigeria (MAN) has stated that unsold inventories in the manufacturing sector increased to N271.96bn in the first half of 2023.
In a report titled ‘Half Yearly Review of the Economy,’ MAN said the inventory of unsold finished products in the manufacturing sector saw a significant increase when compared to the N187bn recorded in the corresponding period of 2022.
It said the rise in inventory could be attributed to a weakened purchasing power of the consumers, brought about by diminishing real household income.
The report stated that investment into the sector during the period increased to N192.8bn from N178.3bn recorded in the corresponding half of 2022; thus, indicating N14.50 billion or 8.1 per cent increase over the period.
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It, however, said the increase in investment in naira value was driven by the currency devaluation, which saw the naira depreciate to N901 per dollar or 65 percent depreciation at the Investor and Export Window from N462 per dollar before the devaluation policy of the CBN was announced.
“Hence, the increase recorded does not indicate physical investment by manufacturers but rather nominal, which resulted from the devaluation of the currency that has made the manufacturers pay more for plants and machinery importations.”
Similarly, it stated that employment generation of the manufacturing sector declined to 6,428 in the first half of 2023.
“This is an indication of 32.8 per cent reduction in employment generation capacity when compared with 9,559 jobs generated in the first half of 2022.
Also, the data showed a shed of 313 jobs when compared with 6741 jobs created in the second half of 2022. The decline in the number of jobs created in the sector during the period further highlighted the unfriendly business environment resulting from the hasty policies and residual effect of the currency redesign policy that led to naira crunch.”
It added that a total of 3,567 jobs were lost in the first half of 2023, indicating 1,855 more jobs lost when compared to the 1,709 jobs lost in corresponding half of 2022 and 850 more jobs lost when compared to 2,708 jobs lost in the last half of 2022.
Importers killing Nigerian made tomato brand – Manufacturer
Similarly, manufactures of local tomato brands have alleged threat as government agencies continue to favour foreign manufacturers.
The situation has triggered concerns among local producers, who lament the dwindling support for their products, ultimately jeopardising the industry’s viability.
Though the federal government, through the National Agency for Food and Drug Administration and Control (NAFDAC), has imposed a ban on tomato paste imports, evidence suggests that foreign products continue to flood the Nigerian market.
These unauthorised imports, according to stakeholders, continue to undermine local manufacturers, harm the economy and pose potential health risks to consumers.
Speaking on this, Roland Chima, a local manufacturer said: “Despite the goodwill and support Nigerian consumers have shown to local manufacturers, foreign tomato paste importers and their associates are actively working to tarnish our integrity and credibility.”
Daily Trust reports that his comment came on the heels of the arrest of Chioma Egodi, a Facebook user, over her negative review of Nagiko Tomato Mix, one of the tomato paste variants of Erisco Foods Limited, a local manufacturer.
Though the lady has since been released following the intervention of the Federal Competition and Consumer Protection Council (FCCPC), there have been mixed reactions over the development.
“In this competitive landscape, the battle between local and imported products intensifies, potentially leading to the spread of false information to discredit local offerings,” Chima added.
