By Industrial Digest
Th reopening of Nigeria’s land borders and huge purchases of locally manufactured goods this festive season is gradually clearing the backlogs of unsold finished goods in warehouses across the subsectors.
A check by Industrial Digest shows that the inventory of unsold finished goods in the sector totaled over N402 billion in the second half of 2019.
The Manufacturers Association of Nigeria attributed the development to the closure of land borders which made the inventory to have jumped to N402 billion from N375.4 billion recorded in 2018.
It was observed that during Christmas and New Year, people were busy buying a lot of food and beverages, especially carbonated drinks, beers, fruits juice; cereals, toiletries, wines, etc, in cartons, and pieces; for consumption with their friends and family members, and gifts.
Data obtained from the Association showed that a greater percentage of CEOs interviewed, 43%, disagreed that the inventory of unsold manufactured products in the country has reduced over the last three months (October-December 2020) 26% agreed while the remaining 31% were not sure.
Although the number of those in agreement remained close to the records from the third quarter, there is the need to do more to improve the purchasing power of consumers to stimulate aggregate demand and deliberately support industries to reduce the cost of Nigerian manufactured products for improved competitiveness.