Nigeria’s stronger economic growth has positioned the country to withstand potential oil market disruptions arising from escalating tensions in the Middle East, Finance Minister Wale Edun said.
Edun, who also serves as coordinating minister of the economy, said the country’s 4.07% real gross domestic product growth recorded in the fourth quarter of 2025 provides a buffer as global energy markets face uncertainty linked to the standoff involving the United States, Israel and Iran.
The federal government said it is closely monitoring the evolving geopolitical tensions and their possible implications for global energy supply routes and financial markets.
In a statement issued Tuesday, March 11, 2026, by the Federal Ministry of Finance through its Assistant Director of Information and Public Relations, Uloma Amadi, the government said the Economic Management Team met to assess potential risks to the Nigerian economy.
The EMT convened to review the possible consequences of escalating tensions in the Middle East, particularly the US–Israel–Iran standoff and the risks it poses to global energy supply corridors such as the Strait of Hormuz.
The narrow waterway handles a significant portion of global crude shipments and is widely regarded as one of the most critical chokepoints in international oil trade.
According to the statement, the government is assessing how disruptions to the route could affect oil prices, financial markets and broader economic conditions worldwide.
Edun also chaired a meeting on Nigeria’s Naira-for-Crude policy to evaluate developments in global energy markets and the potential domestic implications.
The government said the situation remains fluid, with global markets already showing signs of uncertainty amid fears that the geopolitical crisis could disrupt energy supply chains.
Such disruptions could trigger volatility in crude oil prices and financial markets, with potential ripple effects for commodity importing and exporting economies alike.
Because Nigeria is integrated into global commodity and financial markets, authorities identified three main transmission channels through which the crisis could affect the domestic economy.
These include changes in crude oil and gas prices, shifts in capital flows and financial market conditions, and rising global logistics and supply costs.
The government said volatility in global energy markets is already pushing up prices of key commodities, a trend that could influence domestic costs for petrol, diesel, cooking gas and fertiliser.
Heightened geopolitical risks could also prompt international investors to move capital toward safe haven assets such as U.S. Treasuries and gold, potentially affecting capital inflows to emerging markets including Nigeria.
In addition, disruptions to major shipping routes or energy supply corridors could raise global freight and logistics costs, putting further pressure on domestic prices.
The finance minister said sustained instability in the Middle East could eventually translate into higher prices for goods and services globally, intensifying inflationary pressures and increasing the cost of living.
During the EMT meeting, ministers provided sector specific briefings on the evolving crisis and discussed the potential scale of economic impact depending on how long the conflict persists and how severe it becomes.
Officials also examined how developments in global oil markets could affect Nigeria’s fiscal outlook and external reserves, given the country’s dependence on hydrocarbon revenues.
The government said the Economic Management Team is closely tracking key macroeconomic indicators, including international crude prices, exchange rate movements and their implications for domestic inflation.
Authorities are also monitoring global capital flows and financial market conditions to gauge potential risks to Nigeria’s fiscal stability.
Despite the global uncertainty, the government said Nigeria is entering the current period from a position of improved economic strength.
The statement cited data showing the country recorded 4.07% real GDP growth in the fourth quarter of 2025, one of the strongest quarterly expansions in more than a decade.
Officials attributed the performance to ongoing economic reforms and improved macroeconomic coordination across government institutions.
The federal government said it remains committed to protecting those gains and ensuring that recent progress in stabilising the economy and improving revenue mobilisation is not undermined by external shocks.
To that end, the Economic Management Team is maintaining close coordination among fiscal, monetary and energy policy authorities.
Policy responses are also being kept under continuous review to limit potential volatility and protect households and businesses from the spillover effects of the global crisis.
Edun said careful policy calibration would remain central to the government’s response as global developments continue to unfold.
He added that authorities will adjust policy measures when necessary to sustain investor confidence, protect Nigerians’ welfare and preserve economic stability amid rising geopolitical risks.