The Federal Ministry of Finance Nigeria says the federal government is closely tracking rising geopolitical tensions in the Middle East involving the United States, Israel and Iran, assuring that steps are being taken to safeguard Nigeria’s economic stability.
In a statement issued on Wednesday by Uloma Amadi, assistant director of information and public relations at the ministry, the government said it is observing developments in global oil prices, exchange rate movements, capital flows and their potential effects on Nigeria’s economy and foreign reserves.
The ministry disclosed that the Economic Management Team (EMT), chaired by the minister of finance, Wale Edun, recently held a meeting to evaluate how the ongoing conflict could affect Nigeria’s economic outlook.
According to the statement, Edun also presided over a policy coordination meeting on the government’s naira-for-crude initiative to review developments in the energy market and their domestic implications.
“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,” the ministry said.
Given Nigeria’s link to international commodity and financial markets, the ministry identified three main channels through which the conflict could impact the local economy.
These include fluctuations in crude oil and gas prices, movements in global capital flows and financial markets, as well as rising global logistics and supply costs.
“Crude Oil and Gas Prices: Volatility in global energy markets is driving increases in domestic prices, including fuel, diesel, cooking gas, and fertiliser,” the ministry said.
“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 ministry warned that prolonged instability could worsen inflationary pressures and raise the cost of living.
“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 statement said.
“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.”
It added that the economic management team is maintaining coordination across fiscal, monetary and energy policies while reviewing measures aimed at limiting market volatility and shielding 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 ministry said.
The statement also assured Nigerians that the government remains alert and proactive in its efforts to preserve economic stability and sustain growth.
