The Manufacturers Association of Nigeria (MAN) says the country must explore strategic ways to avert the ‘looming’ economic crisis caused by the ongoing Russia-Ukraine war.
MAN said this in an emailed presentation on Thursday, according to Bloomberg.
It warned that rising prices occasioned by Russia’s invasion of Ukraine present a “looming crisis” for companies in Nigeria.
The association said the war has led to a rise in prices of raw materials which could trigger difficulties in the manufacturing sector.
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It said the surge in prices of diesel, wheat, and other imported materials, combined with high-interest rates, foreign exchange shortages, and soaring inflation, is crippling production in Africa’s most populous country.
According to MAN, most Nigerian manufacturers rely largely on diesel to power their machines due to unreliable electricity supply from the national grid, however, the price of diesel has doubled this year.
“The price of wheat, a key raw material for flour millers and other food processors, has also shot up,” MAN said.
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“Companies are also worried that inflation, which accelerated to 15.9 percent in March, could rise further if a longer conflict prolongs supply chain disruptions.
“This calls for the crafting of a national response and sustainability strategic plan to avert the looming economic crisis and shortages that would arise from the impact of the Russia invasion of Ukraine.”
Thus, the organisation urged companies to adopt a ‘strategic plan’ to limit the war’s impact on their operations.
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