The Federal Government (FG) has disclosed that it is closely monitoring escalating geopolitical tensions in the Middle East involving the United States, Israel, and Iran, warning that the crisis could lead to higher costs of fuel, food, and logistics operations.
According to a statement signed by the Assistant Director of Information and Public Relations at the Ministry of Finance, Mrs. Uloma Amadi, the Economic Management Team (EMT), chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, convened a meeting to assess the potential impact on Nigeria’s economy.
Mr. Edun also chaired a Naira-for-Crude policy coordination meeting to review developments in global energy markets and their domestic implications.
He noted that the situation remains fluid, with global market uncertainty driven by concerns over disruptions to critical energy supply routes, particularly the Strait of Hormuz, already contributing to volatility in crude oil prices and financial markets.
Minister Edun stated that given 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, including:
– Crude Oil and Gas Prices: Volatility in global energy markets is driving increases in domestic prices, including fuel, diesel, cooking gas, and fertiliser.
– Capital Flows and Financial Markets: Heightened geopolitical risks may prompt a shift to safe-haven assets, affecting capital flows into emerging markets, including Nigeria.
– Global Logistics and Supply Costs: Disruptions to major shipping routes could raise freight and logistics costs, putting upward pressure on domestic prices.
He also warned that beyond these immediate effects, sustained instability could further pressure inflation and the cost of living, reiterating that the EMT is closely monitoring key macroeconomic indicators, including crude oil prices, exchange rate developments, capital flows, and implications for Nigeria’s fiscal outlook and external reserves.
The minister emphasised that Nigeria enters this period of global uncertainty from a position of strengthening fundamentals. “Real GDP grew by 4.07 percent in Q4 2025 — one of the strongest quarterly performances in over a decade,” he said.
“The EMT is maintaining close coordination across fiscal, monetary, and energy policy institutions, with policy options under continuous review to mitigate volatility and shield households and businesses from external shocks.”
Edun added that careful policy calibration would remain central to the government’s response, ensuring that recent gains in macroeconomic stabilisation and growth are not undermined by external developments.
The FG assured the public that it remains vigilant and proactive and will take all necessary steps to preserve Nigeria’s economic stability and sustain its growth trajectory.
