Nigeria’s economic managers are closely monitoring escalating tensions in the Middle East involving the United States, Israel and Iran, as the Federal Government moves to safeguard the country’s economic stability amid growing global uncertainty.
In a statement released Wednesday by the Federal Ministry of Finance on its official X page, the government said it is tracking developments in the region and assessing potential impacts on Nigeria’s economy, particularly through energy markets, capital flows and global supply chains.
The statement noted that the Economic Management Team (EMT), chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, held a meeting to evaluate the implications of the unfolding geopolitical crisis.
Edun also presided over a separate coordination meeting on the government’s Naira-for-Crude policy to review developments in global energy markets and their possible domestic consequences.
According to the ministry, the evolving situation has already triggered uncertainty in global markets, with concerns about disruptions to key energy supply routes—particularly the Strait of Hormuz—contributing to volatility in crude oil prices and financial markets.
Officials warned that Nigeria’s integration into global commodity and financial systems means the crisis could have ripple effects across several sectors of the economy.
The government identified three immediate channels through which the conflict could affect Nigeria: fluctuations in crude oil and gas prices, shifts in capital flows across global financial markets and rising logistics costs due to potential disruptions in major international shipping routes.
Authorities noted that volatility in global energy markets could translate into higher domestic prices for fuel, diesel, cooking gas and fertiliser, placing additional pressure on businesses and households.
Similarly, heightened geopolitical risks could encourage investors to move funds toward safer assets, potentially affecting capital inflows into emerging markets such as Nigeria.
Disruptions to shipping routes, the ministry added, could also increase freight and logistics costs, pushing up prices of imported goods and adding pressure on domestic inflation.
Despite the risks, the government said Nigeria is entering the period of uncertainty with improving economic fundamentals.
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According to the statement, the country recorded a 4.07 per cent growth in real Gross Domestic Product (GDP) in the fourth quarter of 2025—one of the strongest quarterly economic performances recorded in more than a decade.
The EMT said it is closely monitoring key macroeconomic indicators including crude oil prices, exchange rate movements, capital flows and the implications for Nigeria’s fiscal outlook and external reserves.
The government added that coordination among fiscal, monetary and energy policy institutions remains ongoing, with policy options under continuous review to cushion potential shocks.
It assured Nigerians that authorities remain vigilant and prepared to take necessary steps to protect households, support businesses and sustain the country’s economic growth trajectory amid evolving global developments.
The statement was signed by Mrs. Uloma Amadi, Assistant Director of Information and Public Relations at the Federal Ministry of Finance.