(Bloomberg) -- Nigerian manufacturers have warned that rising prices sparked by Russia’s war on Ukraine present a “looming crisis” for companies in Africa’s largest economy.
The surge in prices of diesel, wheat and other imported materials, combined with high interest rates, US dollar shortages and soaring inflation, is crippling production in Africa’s most-populous country, the Manufacturers Association of Nigeria said in an emailed presentation on Thursday.
Nigerian manufacturers rely largely on diesel -- which has doubled in price this year -- to power their machines due to unreliable electricity supply from the national grid. The price of wheat, a key raw material for flour millers and other food processors, has also shot up.
Companies are worried that inflation, which accelerated to 15.9% in March, could rise further if a longer conflict prolongs supply chain disruptions, the group said.
The current situation “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,” the manufacturing body said.
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