US-Israeli/Iranian Conflict Threatens Nigeria's Exports

Dike Onwuamaez, representing the Manufacturers Association of Nigeria (MAN), has declared that the escalating conflict between the United States, Israel, and Iran poses a significant threat to Nigeria's $136.45 million chemicals and pharmaceutical exports. He emphasized that the war could lead to increased product costs and a rapid accumulation of unsold inventory, jeopardizing Nigeria's target of achieving a 3.1 percent real growth rate by 2026.

Onwuamaez identified three key sectors facing challenges: the chemicals and pharmaceuticals group, the basic metal and iron/steel group, and the food, beverage, and tobacco group. The chemicals and pharmaceuticals sector is particularly vulnerable, with exports to the U.S. accounting for approximately 88 percent of its total.

The conflict is expected to inflate costs for active pharmaceutical ingredients and raw materials, further squeezing profit margins. Additionally, the food and beverage sector will face price hikes due to increased import costs and freight charges, impacting the purchasing power of Nigerian consumers.