The Federal Government of Nigeria is closely monitoring the escalating geopolitical tensions in the Middle East involving the United States, Israel, and Iran to mitigate potential risks to the national economy.
The Economic Management Team (EMT), chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, convened on March 11, to assess the situation and review the Naira-for-Crude policy in light of global energy market volatility.
The government has identified three primary channels through which the crisis, particularly concerns over the Strait of Hormuz, could impact Nigeria.
First, volatility in global energy markets is driving up domestic prices for fuel, diesel, cooking gas, and fertilizer.
Second, heightened global risks may shift capital toward safe-haven assets, affecting flows into emerging markets like Nigeria.
Third, disruptions to international shipping routes are expected to increase freight and logistics costs, adding upward pressure on domestic inflation.
Despite these external threats, the Federal Government maintains that Nigeria is facing this uncertainty from a position of strengthening economic fundamentals.
The Ministry highlighted that Real GDP grew by 4.07 percent in the fourth quarter of 2025, marking one of the strongest quarterly performances for the country in over a decade.
This growth provides a buffer as the EMT monitors key indicators such as exchange rate developments, external reserves, and the fiscal outlook.
The EMT is currently maintaining strict coordination across fiscal, monetary, and energy policy institutions to shield households and businesses from external shocks.
The government emphasized that policy options remain under continuous review to ensure that recent gains in macroeconomic stabilization are not undermined.
The Federal Ministry of Finance assured the public that the administration remains proactive and will take all necessary steps to sustain Nigeria’s current growth trajectory amidst the fluid global situation.