Manufacturers CEOs Confidence Index (MCCI) computed from a survey of over 400 manufacturing companies in Nigeria for the 4th quarter of 2020 disclosed that the unsold Inventory of Locally Manufactured Goods Inventory of unsold finished manufactured goods increased to N303.22 billion in the 2nd half of 2020 from N202.16 billion recorded in the corresponding half of 2019; thus, indicating N101.06 billion or 50% increase over the period.
The Manufacturers Association of Nigeria (MAN) in its Executive Summary and Bi-Annual Review of the Economy from July through to December 2020 showed also increased by N28.83 billion or 10.5% when compared with N275.39 billion recorded in the 1st half of the year.
In the statement released shortly showed Inventory of unsold manufactured goods in the sector totaled N577.61 billion in 2020 as against N402.42 billion recorded in the 2019. MAN said the increase in inventory in the period was attributed to the general low consumption and renewed imports in the economy as global economies generally open after months of lockdown.
“Electrical and Electronic sectoral group accounted for over 33% of total inventory of unsold manufactured products in period.
The group is having the challenges of low patronage, high smuggling and products counterfeiting which rubbed-off negatively on inventory noted MAN.
“The year 2020 was a very difficult year for the economy and manufacturing sector due to the onslaught of COVID-19 Pandemic. COVID-19 had a staggering devastation on global economies as evident in the huge death toll of manpower; the crashing of crude oil price, the slowing of global supply and demand; and the total halting of economic activities through the lockdown.
“The pandemic had a crushing impact on the manufacturing sector as the sector fell into economic recession in the 3rd quarter of 2020. At the moment and following the impact of COVID-19 productivity in the sector is at the lowest and therefore requires deliberately orchestrated action to rekindle significant productive activities in the sector.