The Federal Government has stated that it is closely monitoring the escalating tensions in the Middle East and assessing potential implications for Nigeria’s economy as global markets respond to the evolving geopolitical situation.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the disclosure following a meeting of the Economic Management Team (EMT), where officials evaluated possible economic risks arising from the conflict involving the United States, Israel and Iran.
According to the minister, the government is tracking developments across global energy markets and financial systems to ensure that Nigeria remains protected from potential external shocks.
The EMT meeting also reviewed developments in the global oil market and their potential domestic implications, particularly in light of rising uncertainty surrounding major energy supply routes.
One of the primary concerns highlighted during the meeting is the strategic Strait of Hormuz, a key shipping corridor through which a significant portion of the world’s oil and energy supplies pass.
Disruptions or restrictions in the route could influence global oil prices, shipping costs and supply chains, all of which have implications for economies that are integrated into international commodity markets.
Nigeria, as a major oil-producing nation and a participant in global trade networks, remains sensitive to movements in global crude prices and capital flows.
Government officials identified three major channels through which the crisis could affect Nigeria’s economy.
The first relates to crude oil and natural gas prices. Volatility in global energy markets could influence domestic prices of fuel, diesel, cooking gas and fertiliser, potentially affecting production costs across multiple sectors.
The second area of concern involves capital flows and financial markets. Heightened geopolitical uncertainty often drives investors toward safer assets, which could influence capital movement across emerging markets and affect currency stability.
The third channel relates to logistics and supply chains. Disruptions in major shipping routes or energy corridors could raise international freight costs and increase the cost of imported goods.
Officials noted that prolonged instability in the region could also exert upward pressure on inflation if global supply disruptions translate into higher domestic prices.
Members of the Economic Management Team provided sector-specific briefings during the meeting, outlining potential scenarios depending on how the conflict evolves and how global oil markets respond.
The government noted that the scale of the economic impact will largely depend on the duration and intensity of the crisis, particularly its influence on global oil supply.
Despite the uncertainties, the Federal Government expressed confidence that Nigeria’s economic fundamentals remain resilient.
Recent economic data showed that the country recorded real Gross Domestic Product growth of 4.07 percent in the fourth quarter of 2025, one of the strongest quarterly growth performances in more than a decade.
Officials said this growth reflects ongoing economic reforms and improved coordination across fiscal and monetary policy institutions.
The government stated that the Economic Management Team will continue to monitor key macroeconomic indicators, including global crude oil price movements, exchange rate trends, capital flows and the nation’s fiscal outlook.
Policy options remain under active review to ensure that Nigeria is able to respond swiftly to any adverse external developments.
Edun emphasised that maintaining macroeconomic stability remains a priority for the government as it works to protect recent economic gains and sustain investor confidence.
He added that authorities will continue to calibrate policy responses carefully to ensure that businesses and households are shielded from potential shocks arising from global market volatility.
The Federal Government reiterated its commitment to maintaining economic stability and supporting sustainable growth despite the uncertainties in the global environment.
