Manufacturers of food and beverages have reduced production by 20 percent following declining demand from consumers as a result of persistent rise in prices reflected in further rise in food inflation rate to 31.52 per cent in October.
The fall in demand has also made it difficult for these manufacturers to sell finished goods as their stock of unsold finished goods rose by 34.03% year-on-year to N78.82 billion in the nine months ending September 30, 2023.
Recall that the inflation rate in Nigeria has been on a constant increase, rising by 5.95 percentage points to 26.72 percent in September 2023 from 20.77 percent a year ago, triggered by various factors including high energy cost, insecurity, especially in the farming communities in Nigeria, Russia-Ukraine war among others.
Besides, the pump price of petrol, otherwise known as premium motor spirit (PMS), has risen by 127.8 percent this year alone from N257.12 per litre in January 2023 to an average of N560 per litre in September, all these combining to pressure consumer wallets and undermine their purchasing power.
