FG WATCHING MIDDLE EAST TENSIONS, MOVES TO SHIELD NIGERIA’S ECONOMY

Nigeria’s Federal Government says it is closely monitoring the escalating geopolitical tensions in the Middle East involving the United States, Israel and Iran, while working to safeguard the country’s economic stability.

The update followed a meeting of the Economic Management Team (EMT) chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, where officials reviewed potential global and domestic economic impacts of the crisis.

According to the Ministry of Finance, the government will continue to track developments and adjust policy measures when necessary to reduce economic disruptions, maintain investor confidence and protect Nigerians’ welfare.

Officials warned that the tensions, particularly concerns about disruptions along the Strait of Hormuz, are already causing volatility in global crude oil prices and financial markets. Given Nigeria’s integration with global markets, the government identified three key areas where the crisis could affect the economy:

• Energy Prices: Rising global oil volatility could push up domestic prices of fuel, diesel, cooking gas and fertiliser.
• Capital Flows: Investors may shift funds to safer markets, affecting capital inflows into emerging economies like Nigeria.
• Logistics Costs: Disruptions to major shipping routes could increase freight costs, driving up prices of imported goods.

The government also warned that prolonged instability could increase inflation and the overall cost of living if global supply chains remain disrupted.

Despite these risks, Edun said Nigeria is entering this uncertain period from a stronger economic position, pointing to a 4.07% GDP growth in the fourth quarter of 2025, one of the country’s strongest performances in over a decade.

He added that ongoing economic reforms and improved macroeconomic coordination have strengthened the country’s fundamentals, and the government remains committed to protecting these gains.

The EMT is now maintaining close coordination across fiscal, monetary and energy policy institutions, while continuously reviewing policy options to shield households and businesses from external shocks.