By By Elizabeth Ugbo
The Manufacturers Association of Nigeria (MAN) has warned on Monday that rising geopolitical tensions in the Middle East are increasing production costs for Nigerian manufacturers, with Director General Segun Ajayi-Kadir saying in a statement that the crisis is already hurting factories across the country, especially through higher energy prices and logistics disruptions, and urging urgent government intervention to protect jobs and output.
Rising Global Conflict Drives Energy and Logistics Shock
MAN explained that the ongoing Middle East tensions have triggered a global energy shock. This has pushed up crude oil prices and, in turn, raised diesel and gas costs in Nigeria.
As a result, manufacturers now face higher production expenses. Many firms also struggle with reduced margins and weaker consumer demand.
Ajayi-Kadir warned that imported inflation is worsening the situation. He said freight costs and shipping delays are also rising sharply.
Manufacturing Sector Faces Production and Inventory Pressure
The association noted a dangerous dual challenge. Manufacturers now battle rising production costs and unsold inventories.
Energy costs remain a major burden. Many companies depend heavily on diesel and gas for operations.
Consequently, operating margins continue to shrink. This trend threatens industrial output and long-term stability.
MAN Calls for Urgent Government Intervention
To reduce pressure, MAN urged the Federal Government to act quickly. It recommended a six-month suspension of multiple haulage levies, highway taxes, and transit tolls on manufacturers.
The group also called for fast-tracking the Presidential Compressed Natural Gas (CNG) programme. It said industrial clusters should benefit first to reduce diesel dependence.
In addition, MAN proposed a dedicated foreign exchange window at the Central Bank of Nigeria. This window would support importation of critical raw materials.
Local Refining and Tax Relief Measures Recommended
MAN further urged the government to prioritise domestic refinery supply. It said local refineries should supply manufacturers at competitive prices.
The association also demanded a temporary suspension of logistics levies and multiple taxation on haulage.
Ajayi-Kadir stressed that Nigeria must reduce dependence on imported inputs. He warned that external shocks expose structural weaknesses in the economy.
Warning Over Jobs and Industrial Growth
MAN warned that inaction could trigger factory closures and widespread job losses. It also said Nigeria’s projected 3.1% manufacturing growth for 2026 now faces serious risk.
Ajayi-Kadir added that urgent reforms can still reverse the trend. He said Nigeria must use the crisis to build a stronger and more self-sufficient industrial base.
Conclusion: A Turning Point for Industrial Policy
MAN believes Nigeria must respond decisively to the global shock. The group said coordinated fiscal and energy reforms can protect manufacturers.
However, delays could deepen economic strain and weaken industrial expansion.
