ABUJA, Nigeria (VOICE OF NAIJA)-The Federal Government has announced plans to pursue more affordable financing and enhanced global financial backing as rising geopolitical tensions continue to weigh on Nigeria’s economy.
This was revealed in a media briefing issued on Monday by the Special Adviser to the Minister of Finance and Coordinating Minister of the Economy on Media and Communications, Dr Ogho Okiti.
The disclosure comes ahead of the 2026 IMF and World Bank Spring Meetings scheduled to hold in Washington, DC.
According to the statement, Nigeria is currently dealing with the economic consequences of the ongoing US–Israel–Iran conflict, which has disrupted global energy markets, tightened financial conditions, and reignited inflationary pressures across economies.
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The statement read, “The 2026 IMF/World Bank Spring Meetings take place at a moment of heightened global uncertainty… the shock compounds high fuel prices, increasing food costs, and broader inflationary pressures and places further strain on households and businesses.”
It further explained that although Nigeria has implemented reforms to stabilise the economy, the external shock has occurred during a critical transition phase, making it more difficult to sustain growth and improve living standards.
The government stated that a major priority at the meetings would be to advocate for “lower cost of capital for Nigeria and other developing countries” and “fairer global financial conditions” in order to ease fiscal pressures.
It also noted that Nigeria would seek “additional support for economies navigating reforms and external shocks simultaneously,” as part of efforts to safeguard growth and stabilise the economy.
The statement highlighted a sharp increase in crude oil prices due to the conflict, with Nigeria’s Bonny Light rising from about $70–$73 per barrel to over $110–$120. While this could improve government revenue and foreign exchange earnings, the Federal Government cautioned that the gains are being eroded by higher domestic costs.
It said, “Petrol prices rose by over 50 per cent, from about N890 – N900 to N1260 – N1330,” while diesel prices climbed by more than 70 per cent to around N1,550 per litre at peak levels.
The government identified three primary channels through which the crisis is impacting Nigeria: rising energy prices, reduced capital inflows, and increasing global logistics and import costs.
On capital flows, it explained that heightened geopolitical risks often push investors toward safe-haven assets, potentially reducing investment inflows into emerging markets like Nigeria and tightening local financial conditions.
It also warned that disruptions to global shipping and energy supply routes could increase freight costs and further drive inflation through more expensive imports.
Despite these pressures, the Federal Government said Nigeria is entering the current crisis from a relatively stronger position compared to previous shocks such as the COVID-19 pandemic and the Russia-Ukraine war.
It pointed to recent reforms, including the liberalisation of the foreign exchange market and subsidy removal, as steps that have strengthened macroeconomic fundamentals.
The statement added that oil production has risen to about 1.86 million barrels per day, while initiatives like the naira-for-crude policy are being used to stabilise domestic fuel supply.
It also reaffirmed the government’s commitment to maintaining a liberalised foreign exchange regime to support capital inflows, noting that Nigeria’s reclassification as a Frontier Market by FTSE Russell signals improving investor confidence.
“The government is determined to grow the country’s macroeconomic stability and attract and scale investments required to lift millions out of poverty,” the statement said.
At the Spring Meetings, the Minister of Finance, Wale Edun, is expected to engage with global financial institutions, investors, rating agencies, and development partners to strengthen Nigeria’s economic outlook and attract investment.
According to the government, these engagements will focus on showcasing policy credibility, boosting investor confidence, and positioning Nigeria as a resilient economy amid global uncertainty.
It added that beyond stabilisation, the next phase of economic strategy will prioritise scaling private sector investment, unlocking domestic capital markets, and promoting job-rich growth.
“The government remains resolute… to maintain macroeconomic stability, attract investments to drive inclusive growth, and invest in human capital and social protection,” the statement said.
Meanwhile, oil prices surged while stock markets declined on Monday after US-Iran peace talks collapsed and Donald Trump announced a blockade of the strategic Strait of Hormuz, intensifying concerns over energy supply disruptions from the Middle East.