The Federal Government on Wednesday said it is closely tracking escalating geopolitical tensions in the Middle East, involving the United States, Israel, and Iran, and remains committed to safeguarding Nigeria’s economic stability.
The Economic Management Team, led by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, met recently to evaluate the risks.
A statement by the Assistant Director, Information and Public Relations at the Federal Ministry of Finance, Mrs. Uloma Amadi said the group also reviewed the nation’s “Naira-for-Crude” policy amid volatile energy markets.
NewsQuest reports that global markets have been rattled by fears of disruptions to critical routes, such as the Strait of Hormuz, driving swings in oil prices and investor confidence.
Nigeria, heavily reliant on oil exports and global trade, faces three main channels of impact, the team said.
One of the challenges, according to the statement, is rising crude oil and gas prices, which could inflate domestic fuel, diesel, cooking gas, and fertilizer costs.
“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,” the statement added.
Prolonged instability could exacerbate inflation and living costs, the team noted, while monitoring oil prices, exchange rates, capital inflows, and fiscal health,” the statement noted.
Mrs. Amadi said 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 Federal Government emphasises 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.”
The statement said “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.
“Careful policy calibration will remain central to the government’s response, ensuring recent gains in macroeconomic stabilisation and growth are not undermined by external developments.”
The Federal Government therefore 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.
