THE Producers Affiliation of Nigeria (MAN) has raised alarm over the escalating navy confrontation involving the USA, Israel and Iran, warning that Nigeria’s chemical and pharmaceutical producers face the gravest danger as international {economic} shocks ripple by means of the economic sector.
In an announcement, Director Common of MAN, Segun Ajayi-Kadir, stated the intensifying Center East disaster has despatched “shockwaves throughout the worldwide macroeconomic panorama,” threatening to reverse latest good points in Nigeria’s financial system, together with easing inflation, which lately moderated to fifteen.10 per cent, and improved manufacturing capability utilisation that had climbed above 60 per cent.
In line with him, international geopolitics has turn out to be a direct value driver for Nigerian producers. “When the US and Center East sneeze, the worldwide financial system catches a chilly, and Nigeria shouldn’t be an exception,” he said.
Regardless of rising international crude oil costs, which lately hovered round $84 per barrel, MAN famous that Nigeria stands to achieve little attributable to its weak production output, estimated between 1.3 and 1.4 million barrels per day. This, it stated, creates a paradox the place the nation advantages from worth good points however loses out on volume-driven income, limiting overseas alternate inflows.
“The disaster additionally threatens Nigeria’s commerce relations with the USA, certainly one of its key companions. Nigeria’s exports to the US stood at $5.91 billion in 2024, representing 9.3 per cent of whole exports, whereas imports have been valued at $4.33 billion,” he added.
MAN warned that disruptions in international logistics and Center Japanese transit routes may set off larger freight prices, longer supply timelines and imported inflation.
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“The strengthening of the US greenback amid a worldwide flight to safe-haven property is already exerting renewed stress on the naira, with penalties that will likely be felt straight on manufacturing facility flooring,” the Affiliation added.
Sectoral evaluation by MAN confirmed that the Chemical and Pharmaceutical group is essentially the most susceptible. In 2023, chemical merchandise accounted for about 88 per cent of Nigeria’s manufactured exports to the US, underscoring the sector’s publicity to international petrochemical worth volatility. Rising prices of Lively Pharmaceutical Components (APIs) and different inputs may erode margins and threaten export competitiveness.
Equally, the Primary Steel, Iron and Metal sector faces mounting operational prices attributable to its heavy dependence on vitality, whereas the Meals, Beverage and Tobacco phase is predicted to grapple with imported inflation on grains and packaging supplies.
MAN warned that producers now face a twin problem of rising production prices and weakening demand, which may derail the sector’s projected 3.1 per cent development in 2026.
“The time for reactive measures is over. Nigeria should proactively fortify its manufacturing base to resist exterior shocks,” MAN said.
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