Middle-East Tensions Impact Nigeria's Pharma Exports

The Manufacturers Association of Nigeria (MAN) has issued a warning regarding the potential impact of escalating tensions in the Middle East, specifically the conflict involving the US, Israel, and Iran, on Nigeria's pharmaceutical export earnings. The association highlighted that the chemical products sector is particularly vulnerable, with chemical products accounting for $136.45 million of Nigeria's $154.11 million in total manufacturing exports to the US in 2023.

The sector, which is highly sensitive to fluctuations in crude oil prices, could face significant disruptions due to rising global oil prices, which would inflate costs for active pharmaceutical ingredients and chemical base materials. MAN noted that the US remains a critical trade partner for Nigeria, with exports valued at $5.91 billion in 2024, representing 9.3% of total exports.

The association called for urgent government action to protect the manufacturing sector, including fast-tracking energy transit initiatives and prioritizing domestic supply of refined petroleum products.