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, information and public relations at the Ministry of Finance, the Ministry said the federal government is monitoring oil prices, exchange rates, capital flows, and their impact on Nigeria’s economy and reserves.
The finance ministry said the economic management team
(EMT), chaired by Wale Edun, minister of finance, convened a meeting to assess
the impact of the war on Nigeria’s economy.
The statement noted that the minister also chaired a
naira-for-crude policy coordination meeting to assess energy market
developments 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.
Considering Nigeria’s integration with global commodity and
financial markets, the statement noted that the government has identified three
immediate transmission channels through which the crisis could affect the
Nigerian economy.
The finance ministry listed the channels as crude oil and
gas prices, capital flows, 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 ministry 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 statement noted, sustained
instability could further pressure inflation 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 ministry
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 Q4 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, continuously
reviewing options to reduce volatility, 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 finance ministry said.
The statement reassured the public that the federal
government remains vigilant and proactive, committed to safeguarding Nigeria’s
economic stability and supporting sustained growth.
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