Abiola Sopeju
The Federal Government has announced that it is closely monitoring escalating geopolitical tensions in the Middle East involving the United States, Israel, and Iran, with a firm commitment to safeguarding Nigeria’s economic stability.
The Economic Management Team (EMT), chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, convened in Abuja to assess potential impacts on Nigeria’s economy.
Edun also chaired a Naira-for-Crude policy coordination meeting to review global energy market developments and their domestic implications.
Observers warned that disruptions to critical energy supply routes, particularly the Strait of Hormuz, are already contributing to volatility in crude oil prices and financial markets.
The government identified three immediate transmission channels through which the crisis could affect Nigeria: rising crude oil and gas prices, shifts in capital flows and financial markets, and higher global logistics and supply costs. Sustained instability, they cautioned, could further drive inflation and increase the cost of living.
The EMT is monitoring key macroeconomic indicators, including global crude oil price movements, exchange rate developments, capital flows, and implications for Nigeria’s fiscal outlook and external reserves.
Ministers provided sector-specific updates, noting that the scale of impact will depend on the duration and intensity of the conflict and its effect on global oil supply.
Despite global uncertainty, the government stressed that Nigeria enters this period from a position of strengthening economic fundamentals, citing real GDP growth of 4.07 percent in Q4 2025 — one of the strongest quarterly performances in over a decade.
Edun assured that fiscal, monetary, and energy policy institutions remain in close coordination, with policy options under continuous review to shield households and businesses from external shocks.
The Federal Government however pledged vigilance and proactive measures to preserve economic stability and sustain growth.
