MAN Warns of Manufacturing Crisis, Outlines Solutions Amid US-Iran Tensions

The Manufacturers Association of Nigeria has warned that escalating tensions in the Middle East pose significant risks to Nigeria’s manufacturing sector, as it outlined key measures to mitigate the impact.

In a statement, the association’s Director General, Segun Ajayi-Kadir, said the industry is already under pressure from rising energy costs linked to global oil price shocks.

He warned that the sector’s 3.1 per cent growth projection for 2026 is now in jeopardy.

“Energy cost escalation is biting hard. Many manufacturers are seeing their margins wiped out almost overnight,” he said.

Ajayi-Kadir also highlighted the impact of higher freight charges, longer shipping times, and imported inflation, noting that these factors are driving up production costs while reducing consumer demand.

“Manufacturers are now confronted with the dual threat of skyrocketing production costs and unsold inventories, a development that could derail the sector’s projected 3.1 per cent growth in 2026,” he stated.

To cushion the impact, MAN recommended several policy measures, including fast-tracking the CNG initiative, establishing a special foreign exchange window for critical imports, and encouraging local refineries to supply manufacturers at competitive rates.

The association also proposed a temporary six-month suspension of multiple taxes, levies, and tolls affecting logistics and haulage.

Ajayi-Kadir described the situation as a wake-up call for Nigeria to reduce its dependence on imported inputs.

“We cannot control global geopolitics, but we can control our domestic response,” he said.

“This crisis must serve as a catalyst for building a more resilient and self-sufficient manufacturing sector.”

He warned that failure to act decisively could result in widespread factory closures, job losses, and a major setback to Nigeria’s industrialisation efforts.

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