By Adedapo Adesanya

The Manufacturers Association of Nigeria (MAN) is seeking protection from the federal government amid rising concerns over the impact of escalating Middle East tensions on Nigeria’s manufacturing sector, particularly risks linked to disrupted global shipping routes, volatile energy markets, and supply chain bottlenecks.

MAN noted, “Its vigilance regarding the escalating military tensions involving the United States, Israel, and Iran. These events have significant implications for the global macroeconomic landscape, which can indirectly impact Nigeria.”

The director-general of MAN, Mr Segun Ajayi-Kadir, expressed that this situation arises at a pivotal moment when Nigeria has seen its annual inflation rate positively ease to 15.10 per cent, and manufacturing capacity utilisation has begun to exceed the 60 per cent mark, saying, however, the current geopolitical turbulence poses challenges that require careful navigation to protect the economic progress achieved.

“Although these conflicts are occurring far from our shores, their economic consequences may directly influence the Nigerian economy.

“We are particularly attentive to issues surrounding global shipping disruptions, fluctuating energy markets, and potential supply chain bottlenecks that could challenge local production,” Ajayi-Kadir stated.

Mr Ajayi-Kadir further explained that the recent hostilities in the Middle East are reshaping the global energy and logistics environment.

“With critical disruptions in the Strait of Hormuz, the global markets have become unsettled, reflected in rising Brent crude prices exceeding $84.50 per barrel, and increased global freight and war-risk insurance premiums as vessels seek safer routes,” he stated.

For Nigerian manufacturers, MAN DG added that the implications of these developments are immediate and significant, increasing production costs, saying that historically, disruptions in the U.S. and the Middle East have reverberated throughout the global economy, and Nigeria is no exception.

He noted that “while a rise in global oil prices could theoretically benefit Nigeria by bolstering foreign exchange reserves and contributing to the stability of the Naira, the current reality presents a complex challenge. Nigeria’s domestic crude production hovers around 1.3 to 1.4 million barrels per day due to ongoing structural challenges, limiting the ability to fully leverage potential gains.”

He disclosed that in terms of trade relations, the United States remains one of Nigeria’s most vital partners, stating that given the existing conflict, disruptions in this crucial trade relationship could lead to increased costs for global freight forwarding and longer lead times for imported raw materials, potentially resulting in imported inflation.

According to him, the manufacturing sector is poised to face a variety of immediate and complex challenges, including rising energy costs, which are particularly relevant given that manufacturers depend heavily on gas and diesel for effective operations.

“Additionally, increasing freight costs and longer shipping times are making it more expensive to procure raw materials. Furthermore, heightened costs for essential goods could diminish consumer purchasing power, presenting manufacturers with the challenge of rising production costs amid stagnant or declining sales.”

In identifying the sectors most likely to be affected, MAN emphasised that the impact of global conflicts is not uniformly distributed, adding that “while the entire real sector is likely to feel the pressure, specific groups such as the Chemical and Pharmaceuticals Sector and the Basic Metals, Iron, and Steel Sector may encounter unique challenges.

By Dipo Olowookere

Nigerian stocks shrank by 0.02 per cent as a result of renewed selling pressure, after the consumer goods index crumbled by 0.89 per cent, and the banking space contracted by 0.23 per cent.

Business Post reports that the Nigerian Exchange (NGX) Limited weakened yesterday despite the energy sector closing 1.78 per cent higher, the insurance segment increasing by 0.31 per cent, and the industrial goods counter closing flat.

The All-Share Index (ASI) eased by 44.83 points to 200,913.06 points from 200,957.89 points, and the market capitalisation decreased by N29 billion to N128.969 trillion from N128.998 trillion.

eTranzact lost 10.00 per cent to trade at N20.70, Abbey Mortgage Bank declined by 10.00 per cent to N9.90, Cadbury Nigeria retreated by 10.00 per cent to N63.00, Eterna also fell by 10.00 per cent to N33.75, and DAAR Communications dipped by 9.50 per cent to N1.81.

Conversely, Premier Paints appreciated by 9.97 per cent to N37.50, Zichis gained 9.97 per cent to trade at N13.79, McNichols improved by 9.93 per cent to N7.42, John Holt chalked up 9.86 per cent to close at N18.95, and Trans Nationwide Express went up by 9.75 per cent to N2.59.

On the last day of the week, 595.2 million equities valued at N24.5 billion were transacted in 43,440 deals versus the 678.1 million equities worth N33.1 billion traded in 42,222 deals in the previous session.

This showed an improvement in the number of deals by 2.89 per cent, and a cut in the trading volume and value by 12.22 per cent and 25.98 per cent, respectively.

Wema Bank ended the day as the busiest stock after a turnover of 131.5 million units worth N3.5 billion, Legend Internet traded 41.6 million units valued at N339.2 million, Zichis sold 35.2 million units for N485.6 million, Access Holdings exchanged 29.4 million units worth N764.8 million, and Japaul transacted 21.5 million units valued at N74.6 million.

By Adedapo Adesanya

A loss recorded by market bellwether, Central Securities Clearing System (CSCS) Plc, outweighed the presence of three price gainers, weakening the NASD Over-the-Counter (OTC) Securities Exchange by 0.73 per cent on Friday, March 27.

The Nigerian securities depository firm lost N6.27 during the session to close at N80.10 per share compared with the previous day’s N86.37 per share.

As a result, the market capitalisation shrank by N18.41 billion to N2.512 trillion from the previous session’s N2.531 trillion, and the NASD Unlisted Security Index (NSI) declined by 30.77 points to 4,199.69 points from 4,230.46 points.

The green side of the price movement log showed 11 Plc appreciating by N31.92 to N351.17 per unit from N319.25 per unit, Nigeria Mortgage Refinance Company Plc (NMRC) rose by 55 Kobo to sell at N6.05 per share compared with Thursday’s closing price of N5.50 per share, and IPWA Plc recorded a 50 Kobo growth to end at N5.51per unit, in contrast to the preceding day’s N5.01 per unit.

When the bourse closed for the day, there was a 17,067.5 per cent surge in the voluime of transactions to 58.6 million units from 342,825 units, the value of trades increased by 6,895.4 per cent in the value of securities traded as it closed at N1.6 billion compared to N23.0 million, and the number of deals executed at the session rose 85.2 per cent to 50 deals compared to the preceding session’s 27 deals.

CSCS Plc remained the most active stock by value on a year-to-date basis with 56.2 million units exchanged for N3.8 billion, Infrastructure Guarantee Credit Plc followed with 400 million units valued at N1.2 billion, and Okitipupa Plc came next with 6.5 million units traded at N1.2 billion.

Resourcery Plc closed the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units sold for N415.7 million, followed by Infrastructure Credit Plc with 400 million units sold for N1.2 billion, and Geo-Fluids Plc with 133.0 million units at N511.1 million.