Economy
Nigerian Manufacturers Seek Cover from Middle East War-Induced Risks
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 Adedapo Adesanya
The Naira sold at N1,343.64/$1 Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, April 17, after shedding N1.34 or 0.10 per cent against the greenback from the previous day’s rate of N1,342.30/$1.
In the same vein, the Nigerian currency depreciated against the Pound Sterling in the same market window during the session by N5.03 to quote at N1,824.39/£1 versus the previous rate of N1,819.36/£1, and lost N10.05 against the Euro to sell at N1,591.14/€1 versus N1,581.09/€1.
At the GTBank FX desk, the exchange rate of the Naira to the Dollar remained unchanged at N1,355/$1, and it also maintained stability in the parallel market at N1,375/$1.
Interbank liquidity increased to N124.34 million from N74.255 million the previous day, data from the Central Bank of Nigeria (CBN) showed.
Meanwhile, external reserves remain at $48.70 billion, down from the 2009 peak of $50 billion amidst uncertainties in the global commodities market.
Global oil prices dropped sharply on Friday after Iran signalled that the Strait of Hormuz would remain open to commercial shipping during a temporary ceasefire in the Middle East.
Crypt assets also gained on the news from Iran’s foreign minister, who declared the Strait of Hormuz open, drawing a positive response from President Donald Trump. The development helped ease worry around risky assets like crypto.
Meanwhile, the cryptocurrency market was bullish, as traders weighed possible scenarios ahead of next week’s US-Iran cease-fire deadline.
Ethereum (ETH) appreciated by 3.2 per cent to $2,410.53, Bitcoin (BTC) jumped by 2.8 per cent to $77,124.22, Ripple (XRP) rose by 2.7 per cent to $1.47, Binance Coin (BNB) expanded by 2.5 per cent to $643.97, Dogecoin (DOGE) added 1.0 per cent to close at $0.0988, Cardano (ADA) improved by 0.9 per cent to $0.2578, Solana (SOL) soared by 0.4 per cent to $88.53, and TRON (TRX) gained 0.4 per cent to sell at $0.3275, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.
By Adedapo Adesanya
Oil prices plunged by 9 per cent on Friday after Iran said passage for all commercial vessels through the Strait of Hormuz was open for the remaining ceasefire period.
Brent crude futures lost $9.01 or 9.07 per cent to trade at $90.38 a barrel, while the US West Texas Intermediate (WTI) crude futures depreciated by $10.48 or 11.45 per cent to finish at $83.85 a barrel.
Iran said Friday that the Strait of Hormuz is “completely open” for the remainder of the Israel-Lebanon ceasefire, bolstering hopes of a breakthrough in the weeks-long crisis over the crucial oil route.
Iran had maintained its blockade of the strait despite a two-week ceasefire with the US, which expires on Tuesday, and previously said it would not open the key waterway while Israel continued to strike Lebanon.
Business Post had reported that oil prices weakened to around $88 per barrel after Iranian Foreign Minister Seyed Abbas Araghchi posted on X that “all commercial vessels” would be allowed to pass through the strait throughout the remainder of the ten-day ceasefire in Lebanon.
US President Donald Trump thanked Iran on Truth Social, but stressed that the US naval blockade of the regime’s ports would remain “in full force and effect” until a peace deal was completed. “This process should go very quickly in that most of the points are already negotiated,” he added.
A second round of truce talks between the US and Iran is expected to take place as oil tankers are beginning to test the waters at the Strait of Hormuz.
Despite the fact that all ships can sail through the Strait of Hormuz, this passage needs to be coordinated with Iran’s Islamic Revolutionary Guard Corps (IRGC).
Market analysts noted that if these initial tankers make it through, flows will begin to partially normalise. However, a handful of vessels does not equal restored capacity. The backlog alone will take significant time to clear, and producers across the region are still dealing with disrupted output and logistics.
Prices had already fallen earlier in the Friday session as possible further talks between the US and Iran over the weekend and a 10-day ceasefire between Lebanon and Israel raised investors’ hopes that the war in the Middle East could be nearing an end.
The American President also said on Friday that the US has banned Israel from further bombing in Lebanon, using a harsher tone than usual with the longtime US ally.
By Dipo Olowookere
The daily stock trading hours on the floor of the Nigerian Exchange (NGX) have been expanded by an hour to 4.00 pm after extensive stakeholder engagement, ensuring alignment and operational readiness ahead of the go-live date.
A statement from the bourse on Friday said the extension was approved by the Securities and Exchange Commission (SEC).
Before now, trading activity on Customs Street resumed from 9.30 am to 2:30 pm, but from Monday, April 27, 2026, the resumption time would be 9.00 am, and the closing gong would be struck by 4.00 pm from Monday to Friday.
It was explained that this action was taken “to deepen market liquidity, enhance price discovery, and broaden investor access.”
The NGX has witnessed renewed investor interest due to increased awareness of equities lately, especially as the nation and the global community await the much-anticipated listing of Dangote Refinery shares later in the year, all things being equal.
The statement also noted that this extended trading window would provide greater flexibility for investors, improve responsiveness to market-moving information, and support broader participation across the market.
The development builds on the momentum of Nigeria’s recent reclassification to Frontier Market status by FTSE Russell, reinforcing NGX’s global positioning and enhancing its attractiveness to a broader pool of domestic and international investors.
It further stated that this reform reflects strong regulatory collaboration and underscores the SEC’s continued commitment to advancing market development initiatives. Alongside Nigeria’s Frontier Market reclassification, it signals a deliberate shift towards a more accessible, liquid, and globally competitive market.
With this development, NGX reinforces its position as a leading multi-asset exchange, deepening liquidity, improving market access, and supporting efficient capital formation within Nigeria’s financial markets.
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