The Federal Government of Nigeria through its Economic Management Team (EMT), says it is closely monitoring the escalating geopolitical tensions in the Middle East involving the United States, Israel, and Iran.
The team chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, after assessing the impact of the crisis on the nation’s economy, at a meeting in Abuja, expressed commitment to safeguarding Nigeria’s economic stability.
Edun also chaired a Naira-for-Crude policy coordination meeting to review energy market developments and their domestic implications.
According to the team, 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 team identified three immediate transmission channels through which the crisis could affect the Nigerian economy: (1) Crude Oil and Gas Prices, (2) Capital Flows and Financial Markets, and (3)
Global Logistics and Supply Costs.
It explained that Volatility in global energy markets is already driving increases in domestic prices, including fuel, diesel, cooking gas, and fertiliser.
The also affirmed that the heightened geopolitical risks may prompt a shift to safe-haven assets, affecting capital flows into emerging markets, including Nigeria, as well as broader financial market
conditions.
It added that disruptions to major shipping and energy supply routes could raise international freight and logistics costs, putting upward pressure on domestic prices.
Speaking during the meeting, according to a statement by the Assistant Director, Information and Public Relations of the Ministry of Finance, Mrs. Uloma Amadi, Minister noted that beyond these immediate effects, sustained instability could drive increases in the cost of goods and services, placing further upward pressure on inflation and the cost of living.
The statement said at the EMT meeting, Ministers provided sector-specific updates on the evolving situation. Discussions recognised that the ultimate scale of impact on Nigeria will depend on the duration and intensity of the conflict, particularly its effect on global oil supply and prices.
The Team said it is closely monitoring developments across key macroeconomic indicators, including: Global crude oil price movements and supply conditions, Exchange rate developments and potential pass-through to domestic prices, Capital flows and financial market conditions, and the implications for Nigeria’s fiscal outlook and external reserves.
It however, stated that the country enters this period of global uncertainty from a position of strengthening economic fundamentals.
Noting the recent real GDP growth of 4.07 percent in Q4 2025, one of the strongest quarterly performances in over a decade, reflecting the positive impact of ongoing economic reforms and improved macroeconomic coordination.
The government said it remains fully committed to protecting these gains. Adding policy options remain under continuous review to mitigate volatility and shield households and businesses from external shocks.
Edun emphasised that careful policy calibration will remain central to the government’s response, ensuring that recent progress in macroeconomic stabilisation, revenue mobilisation, and economic growth is not undermined by external developments.
He further noted that the Federal Government would continue to monitor the situation closely and adjust policy measures where necessary to minimise disruptions, sustain investor confidence, and protect the welfare of Nigerians.
