Manufacturers’ Unsold Goods Hit N1.77trn as Cost of Sales Surges

Manufacturing companies listed on the Nigerian Exchange Limited (NGX) entered the second quarter of 2026 with combined inventories of about N1.77 trillion, reflecting growing pressure on businesses amid rising production and selling costs.
Financial Vanguard findings showed that manufacturers’ inventories increased by 10.6% year-on-year, from N1.597 trillion in Q1 2025 to N1.77 trillion in Q1 2026.
At the same time, combined cost of sales rose by 13.7%, from N1.261 trillion to N1.434 trillion.
The figures suggest that manufacturers are holding more unsold stock while spending significantly more to produce and sell their goods.
The inventory build-up cuts across sectors including consumer goods, building materials, agriculture, food processing and other manufacturing-related businesses.
Analysts say the trend reflects a combination of factors, including changing consumer demand, higher input costs, production requirements and company-specific market conditions.
The rising inventory levels could further strain manufacturers’ cash flow if demand remains weak, increasing pressure on businesses already battling elevated operating costs.