The Manufacturers Association of Nigeria (MAN) has put the inventory of unsold finished products in the warehouses of manufacturing companies in the country at about N321.12 billion in 2017, representing a 255 percent increase over the preceding year’s stock valued at N90.43 billion.
The immediate past President of the association, Dr Frank Jacobs, made this disclosure at the 46th Annual General Meeting (AGM) of the association which discussed the theme ‘Mainstreaming. Policies to Catalyse Industrial Renaissance’ held in Lagos.
The industrialist identified the huge inventory of unsold products, inadequate electricity supply, frequent increase in electricity tariff and abnormally high interest rates as amongst the major challenges undermining the performance of the nation’s real sector over the years.
He explained: “Inventory of unsold finished goods increased to N161.53 billion in the second half of 2017 from N35.42 billion recorded in the corresponding period of 2016. Inventory of unsold manufactured goods amounted to N321.12 billion in 2017 against the N90.43 billion recorded in 2016, indicating a 255.19 percent increase over the period.”
Jacobs, whose four-year tenure as the President of the manufacturers’ group ended at the AGM, charged the government for speedy implementation of recommendations made by the association through its various advocacy submissions to improve performance of the sector.
In his speech delivered at the forum, the association’s Director-General, Joseph Ajayi-Kadri, charged the government to tackle the identified challenges with a view to attracting more investments into the sector and by implication, boost its contribution to the nation’s Gross Domestic Product (GDP) value.
Specifically, he canvassed the need for government to prioritise the resuscitation of domestic refineries, support the efficiency of the power generation, transmission and distribution companies and operability of independent power producers for on/off grid power generation.
In addition, Ajayi-Kadri advocated a better exchange rate management system that would support manufacturing in terms of prioritising forex allocation for raw materials, spare parts and machinery.
This is even as he urged the monetary authorities to entrench better foreign exchange rate management such that the industrial sector, including the SMEs, could easily access forex allocation for raw materials, spare parts and machinery.
To improve the performance of the real sector, the DG also advocated the need for monitoring and enforcement of the Executive Orders 003 and 005 by the Federal Government on the patronage of made in Nigerian goods by Ministries, Department Agencies (MDAs) at all tiers of government.