Middle East conflict puts Nigerian pharma exports at risk
Nigeria’s chemical and pharmaceutical manufacturers are facing major threats due to the ongoing US–Israel–Iran conflict, according to the Manufacturers Association of Nigeria (MAN). The association highlighted that the sector is highly exposed to global oil price shocks and depends heavily on exports to the United States. MAN warned that rising crude oil prices and shipping disruptions could significantly increase production costs for local manufacturers. The group urged the Federal Government to take urgent steps to protect the industry from these external shocks.
TLDR
- MAN identified the chemical and pharmaceutical sector as the most vulnerable to the ongoing Middle East tensions.
- In 2023, chemical products made up $136.45m of Nigeria’s $154.11m manufactured exports to the US, accounting for about 88 per cent.
- The association warned that disruptions in global petroleum markets would inflate costs of raw materials and squeeze profit margins.
- Nigeria exported $5.91bn worth of goods to the US in 2024, representing 9.3 per cent of total exports.
- MAN called for urgent government action, including energy transition initiatives and guaranteed foreign exchange for critical imports.
