The Manufacturers Association of Nigeria (MAN), the umbrella body of all manufacturing firms in Nigeria, has raised the alarm that the current energy and maritime crises following the ongoing Middle East conflict, has blocked the delivery of many shipments containing raw materials of manufacturing companies on the seas.
The group said that manufacturing and production are facing risks and other containment amidst the trapping of loaded ships with raw materials. Sunday Telegraph Correspondent reliably gathered from MAN Secretariat in Lagos that lots of firms have lodged complaints about the arrival of their booked raw materials from their foreign suppliers with no dates yet given of their arrivals on Nigerian waters.
With this, the Sunday Telegraph Correspondent gathered from the MAN Secretariat that the ongoing Middle East conflict presents a credible risk to the manufacturing industry as the rising global energy prices are likely to amplify inflationary pressures while simultaneously constraining output growth through higher production and logistics costs for local manufacturers.
Additionally, MAN hierarchy noted also that this dual impact could elevate inflation alongside weakened growth, which poses a significant macroeconomic risk, with adverse implications for business profitability, investment decisions, and overall economic stability.
Speaking in an interview with Sunday Telegraph, the Managing Director and Chief Executive Officer, FAE Limited, Princess ‘Layo Bakare-Okeowo, lamented that her envelope manufacturing company was currently having issues with their shipment of containers of order papers meant for production as they were yet to arrive Nigerian port for collection.
Bakare-Okeowo explained that these are essential raw materials urgently needed for paper and envelopes production. According to her, a ton of paper now is $1,300, adding that those trapped container shipment would have adverse effects on paper mills industries in Nigeria. She said: “We need a lot of investors when it comes to paper making in Nigeria because paper making, I mean is a gold mine.
A ton of paper now is $1,300. Imagine, we are exporting that out of Nigeria. We are even selling it to the whole world. I am having issues now with my shipment because my paper mill is overbooked.”
Similarly, a Senior Logistics Manager in UAC, also told the Sunday Telegraph Correspondent that many of their shipment for their raw materials had not yet arrived on the Nigerian shores amid the Middle East conflict, as they were being told that they were still finding it difficult navigating through the maritime waterways for safe delivery.
According to her, the Middle East conflict has made the 2026 outlook to remain cautiously positive but increasingly uncertain, shaped by geopolitical developments, political cycle dynamics, and fiscal execution risks.
She pointed out that priorities of local manufacturers were to focus on consolidating macroeconomic stability, addressing structural bottlenecks, and implementing targeted measures to protect vulnerable populations. “For businesses and investors, success in this environment will depend on resilience, operational efficiency, and strategic positioning,” she stated.
While speaking on the implications of the Middle East conflict on Africa’s manufacturing sector, the President of Pan-African Manufacturers Association (PAMA), Engr. Mansur Ahmed, argued that the current geopolitical crisis highlights the urgent need to strengthen the resilience of Africa’s manufacturing sector.
Ahmed said that the development of domestic refineries and strategic oil reserves were critical for African governments to pursue, to guard against future shocks arising from energy supply disruptions, as witnessed in the current geopolitical crisis. He stated: “African economies must reduce excessive dependence on imported industrial inputs by strengthening backward integration, regional manufacturing networks, and local value chains.
“A stable and affordable energy supply is essential for industrial competitiveness. Governments, in partnership with relevant private sector stakeholders, should accelerate investments in renewable energy, gas infrastructure, and regional power integration. “Expanding domestic production of fertilizers, petrochemicals, steel, and industrial chemicals will help reduce vulnerability to external supply shocks.
“Efficient transport corridors, ports, and logistics systems are necessary to lower trade costs and improve industrial competitiveness. “Prioritizing the patronage of locally made products will help support and stabilize industrial production amid global pressures.” While speaking further, the PAMA boss added: “The immediate consequence of disruptions in the Strait of Hormuz has been a sharp surge in global energy prices.
Oil prices have risen significantly due to supply uncertainties, with Brent crude reaching levels not seen in several years rising from around $70 per barrel before the conflict to over $100 per barrel. “Energy-intensive industries such as steel, cement, chemicals, Aluminum, and transportation equipment manufacturing have been particularly negatively impacted, as rising oil and gas prices translate into higher production costs across these sectors.
“The closure of the Strait of Hormuz has also disrupted global shipping routes, forcing vessels to take longer alternative paths. This has increased fuel consumption and transit times.
For manufacturers, this translates into: higher transportation costs for industrial inputs; delays in the delivery of machinery and intermediate goods increased insurance and freight premiums disruptions to global supply chains of manufactured goods.”
Similarly, the DirectorGeneral of MAN, Mr. Segun Ajayi-Kadir, pointed out that the intensification of hostilities in the Middle East has fundamentally altered the global energy and logistics landscape, adding that, “With the strategic Strait of Hormuz facing severe disruptions, global markets have panicked.
Brent crude has rapidly surged past the $84.50 per barrel mark, while global freight and war-risk insurance premiums have skyrocketed as vessels reroute away from the Red Sea corridor.
“In economic theory, a spike in global oil prices to $84 per barrel should be a fiscal windfall for Nigeria, boosting our foreign exchange (FX) reserves and stabilizing the Naira towards our projected 2026 threshold of N1,300/$. However, reality presents a stark macroeconomic paradox.
As domestic crude production remains severely suboptimal (hovering around 1.3 to 1.4 million barrels per day due to persistent structural deficits), Nigeria captures only the price gains while missing out entirely on the volume gains.”
