Nigerian manufacturers say their inventory of unsold goods jumped to a record high with a value of N402.4 billion ($1 billion) as consumer spending fell in a difficult business environment.
It’s a confirmation of “the reality that the disposable income of the consumers has been grossly eroded,” Mansur Ahmed, president of the Manufacturers Association of Nigeria, told reporters in the commercial hub of Lagos.
Nigeria’s economy contracted 6.1 per cent in the second quarter as the combined impact of the prolonged lockdown to curb the spread of the coronavirus and the plunge in the price of oil, the country’s main export, took its toll.
Mansur said many manufacturing companies are having difficulty in getting foreign currency to import raw materials and spares that aren’t available in Nigeria.
Unreliable electricity supply is forcing members to spend more than 38% of their production costs on alternative power, adding to their woes, he said.