The Ministry of Finance says the Federal Government is closely monitoring escalating geopolitical tensions in the Middle East involving the United States (US), Israel, and Iran, and remains committed to safeguarding Nigeria’s economic stability.
According to a statement on Wednesday by Uloma Amadi, an assistant director of information and public relations at the ministry, the government is tracking oil prices, exchange rates, capital flows, and their potential impact on Nigeria’s economy and external reserves.
The ministry said the Economic Management Team (EMT), chaired by Wale Edun, the Minister of Finance, convened a meeting to assess the potential impact of the conflict on Nigeria’s economy.
The statement added that the minister also chaired a naira-for-crude policy coordination meeting to review developments in the global 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 integration with global commodity and financial markets, the government identified three immediate transmission channels through which the crisis could affect the Nigerian economy.
The ministry listed the channels as crude oil and gas prices, capital flows and financial markets, and 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 statement 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.”
Beyond the immediate effects, the ministry noted that sustained instability could further increase inflationary pressures and 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 the fourth quarter of 2025 — one of the strongest quarterly performances in over a decade.”
According to the statement, the EMT is maintaining close coordination across fiscal, monetary, and energy policies while continuously reviewing options to reduce volatility and protect 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 government also reassured the public that it remains vigilant and proactive in safeguarding Nigeria’s economic stability and supporting sustained growth.
