The Federal Government of Nigeria said it is prepared to recalibrate economic policies to cushion the country against potential shocks from rising geopolitical tensions in the Middle East, warning that the crisis could affect energy prices, capital flows, and supply chains.
The statement, issued Tuesday by the Federal Ministry of Finance through Assistant Director of Information and Public Relations Uloma Amadi, said the Economic Management Team has begun assessing the possible impact of escalating conflicts involving the United States, Israel, and Iran.
“The Federal Government will continue to monitor the situation closely and adjust policy measures where necessary to minimise disruptions, sustain investor confidence, and protect the welfare of Nigerians,” the statement said.
The ministry said Finance Minister and Coordinating Minister of the Economy Wale Edun chaired the EMT meeting and a separate Naira-for-Crude policy coordination session, where officials evaluated how developments in global energy markets could translate into domestic economic effects.
Officials identified three main channels through which the crisis could affect Nigeria. First, energy market volatility. Rising crude oil and gas prices could increase domestic costs for petroleum products, diesel, cooking gas, and fertiliser, the ministry said.
Second, financial markets and capital flows could be disrupted. Heightened geopolitical risks often drive investors toward safer assets, potentially reducing inflows to emerging markets like Nigeria.
Third, global logistics and supply chains could be affected. Disruptions to shipping routes or energy corridors could raise international freight costs and put additional upward pressure on domestic prices.
The ministry also noted that prolonged instability could exacerbate inflation and increase the cost of living if commodity prices remain elevated. “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.
The EMT meeting included ministers across key economic sectors, who provided updates on how global market developments might influence Nigeria’s fiscal and macroeconomic outlook. The extent of the impact, officials said, would depend on the duration of the crisis and the degree to which it disrupts oil supply.
The government said it is monitoring macroeconomic indicators including crude oil prices, exchange rate movements, capital flow trends, financial market conditions, and potential effects on fiscal performance and foreign reserves.
Despite the uncertainty, the ministry highlighted Nigeria’s relatively strong macroeconomic fundamentals. Data for the fourth quarter of 2025 showed real GDP growth of 4.07 percent, one of the strongest quarterly performances in over a decade, driven by ongoing economic reforms and improved policy coordination.
Edun emphasized that the government will continue careful policy calibration to protect households, businesses, and recent macroeconomic gains. Coordination among fiscal, monetary, and energy institutions remains central to the strategy.
“The Federal Government assures 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,” the statement added.
Policy options under consideration include adjustments to fiscal measures, energy pricing, and foreign exchange management to mitigate the potential impact of global energy market shocks on Nigeria’s economy.
The government said these measures are part of a broader effort to safeguard investor confidence, stabilize domestic markets, and ensure that external volatility does not undermine recent progress in revenue mobilisation and economic growth.
In short, Nigeria’s authorities are signaling readiness to respond swiftly to any spillover effects from the Middle East crisis, highlighting the government’s commitment to maintaining economic stability amid global uncertainty.
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