ABUJA, Nigeria (VOICE OF NAIJA)-The Federal Government says it is closely monitoring escalating geopolitical tensions in the Middle East involving the U.S., Israel, and Iran, while reaffirming its commitment to safeguarding Nigeria’s economic stability.
This was contained in a statement issued by Mrs. Uloma Amadi, Assistant Director of Information and Public Relations at the Federal Ministry of Finance Nigeria, on Tuesday in Abuja.
The statement followed a meeting of the Economic Management Team (EMT), chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun.
The meeting was convened to evaluate the potential impact of the escalating geopolitical tensions in the Middle East involving the U.S., Israel, and Iran.
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“The federal government will monitor the situation closely and adjust policy measures where necessary to minimise disruptions, sustain investor confidence, and protect the welfare of Nigerians,” he said.
Edun also chaired a Naira-for-Crude policy coordination meeting 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 minister explained that given Nigeria’s integration with global commodity and financial markets, the government has identified three key channels through which the crisis could affect the Nigerian economy.
“Crude Oil and Gas Prices: Volatility in global energy markets is already driving increases in domestic prices, including fuel, diesel, cooking gas, and fertiliser.
“Capital Flows and Financial Markets: 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.
“Global Logistics and Supply Costs:
Disruptions to major shipping and energy supply routes could raise international freight and logistics costs, putting upward pressure on domestic prices,” the statement noted.
The minister added that beyond these immediate effects, prolonged instability could lead to higher costs for goods and services, further increasing inflationary pressure and the cost of living.
“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.
“Discussions recognised that the ultimate scale of impact on the country would depend on the duration and intensity of the conflict, particularly its effect on global oil supply and prices.”
Edun stated that the EMT was closely tracking 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, the implications for Nigeria’s fiscal outlook and external reserves,” he said.
The minister added that Nigeria is entering this period of global uncertainty from a position of strengthening economic fundamentals.
He noted that recent data showed real Gross Domestic Product growth of 4.07 per cent in the fourth quarter of 2025, representing one of the strongest quarterly performances in over a decade.
According to him, the growth reflects the positive impact of ongoing economic reforms and improved macroeconomic coordination.
Edun affirmed that the government remains committed to protecting these gains.
He also said the EMT is maintaining close coordination across fiscal, monetary, and energy policy institutions, while policy options continue to be reviewed to reduce volatility and shield households and businesses from external shocks.
Edun added that careful policy calibration would remain central to the government’s response.