The Federal Government on Tuesday assured Nigerians that it was closely monitoring escalating geopolitical tensions in the Middle East involving the United States, Israel, and Iran, and restated its commitment to safeguarding Nigeria’s economic stability.
The assurance was given following the meeting of the Economic Management Team (EMT), chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, to assess the impact of the conflict on Nigeria’s economy.
Also, the minister chaired a Naira-for-Crude policy coordination meeting to review the international energy market developments and their implications for the nation’s oil sector.
The members of the meeting noted that the situation remained uncertain, with global market uncertainty driven by concerns over disruptions to critical energy supply routes, particularly the closure of Strait of Hormuz, which is already contributing to volatility in crude oil prices and financial markets.
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Given the discussions at the two meetings and Nigeria’s integration with global commodity and financial markets, the government has identified three immediate transmission channels through which the crisis could affect the Nigerian economy, namely Crude Oil and Gas Prices, Capital Flows and Financial Markets, and Global Logistics and Supply Costs.
It noted on the crude oil and gas prices that the volatility in global energy markets was already driving increases in domestic prices, including fuel, diesel, cooking gas, and fertilizer, while the heightened geopolitical risks may prompt a shift to safe-haven assets, affecting capital flows into emerging markets, including Nigeria, as well as broader financial market conditions.
On the global logistics and supply costs, the government anticipated that the disruptions to major shipping and energy supply routes could raise international freight and logistics costs, putting upward pressure on domestic prices.
The minister pointed out that beyond these immediate effects, sustained instability could drive increases in the cost of goods and services, placing further upward pressure on inflation and the cost of living.
At the EMT meeting, the ministers provided sector-specific updates on the evolving situation. While their discussions recognised that the ultimate scale of impact on Nigeria would depend on the duration and intensity of the conflict, particularly its effect on global oil supply and prices.
Edun said the EMT was closely monitoring developments across key macroeconomic indicators, including global crude oil price movements and supply conditions, exchange rate developments and potential pass-through to domestic prices, capital flows and financial market conditions, and the implications for Nigeria’s fiscal outlook and external reserves
The government emphasized that Nigeria entered this period of global uncertainty from a position of strengthening economic fundamentals
Recent data shows real GDP growth of 4.07 percent in Q4 2025, one of the strongest quarterly performances in over a decade, reflecting the positive impact of ongoing economic reforms and improved macroeconomic coordination.
The government remains fully committed to protecting these gains.
Accordingly, the EMT is maintaining close coordination across fiscal, monetary, and energy policy institutions. Policy options remain under continuous review to mitigate volatility and shield households and businesses from external shocks.
The minister emphasised that careful policy calibration will remain central to the government’s response, ensuring that recent progress in macroeconomic stabilisation, revenue mobilisation, and economic growth is not undermined by external developments.
He further maintained that the government would continue to monitor the situation closely and adjust policy measures where necessary to minimise disruptions, sustain investor confidence, and protect the welfare of Nigerians.
It assured the public that it remained vigilant and will take all necessary steps to preserve Nigeria’s economic stability and sustain its growth trajectory.
