Nigeria's Manufacturing Sector Struggles Amid Oil Disruptions

The article discusses the impact of ongoing military operations by the United States and Israel against Iran on global crude oil supplies, which has severely affected Nigeria's manufacturing sector. The disruptions have led to increased energy costs, with diesel prices rising from N830.00 to over N1,300.00 per liter, and similar increases in petrol prices.

Professor Mike Idi Obadan, a former member of the Monetary Policy Committee of the Central Bank of Nigeria, highlights that these high energy costs are exerting serious pressure on manufacturing and agricultural sectors, particularly during critical planting periods. Mr. Adewale Smatt Oyerind, Director General of NECA, notes that the war is driving up international crude oil prices, thereby increasing domestic energy costs and eroding citizens' purchasing power.

He warns that without urgent government intervention to stabilize the downstream sector and support vulnerable industries, the situation could lead to business closures and job losses, exacerbating the cost of living crisis in Nigeria.