AWC MDA Desk
Abuja | March 11, 2026
The Federal Government has announced that it is closely monitoring escalating geopolitical tensions in the Middle East involving the United States, Israel and Iran, assuring Nigerians that proactive steps are being taken to safeguard the country’s economic stability.
This assurance followed a high-level meeting of the Economic Management Team (EMT) chaired by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to assess potential implications of the geopolitical developments on Nigeria’s economy.
During the meeting, the minister also presided over a coordination session on the government’s Naira-for-Crude Policy, aimed at reviewing energy market trends and their likely domestic effects.
Global Uncertainty and Energy Concerns
Officials noted that the evolving Middle East situation has created uncertainty in global markets, particularly over possible disruptions to major energy supply routes such as the Strait of Hormuz.
The government said these tensions have already contributed to fluctuations in crude oil prices and financial markets worldwide.
Potential Impact on Nigeria
According to the Federal Government, Nigeria’s integration into global commodity and financial markets means the crisis could affect the country through several key channels.
The first is volatility in crude oil and gas prices, which could lead to higher domestic costs for petrol, diesel, cooking gas and fertiliser.
Secondly, capital flows and financial markets may be affected as global investors shift toward safe-haven assets amid geopolitical uncertainty, potentially reducing investment inflows into emerging economies such as Nigeria.
Thirdly, global logistics and supply chains may experience disruptions if major shipping routes are affected, increasing freight costs and exerting upward pressure on domestic prices.
Monitoring Economic Indicators
The Economic Management Team said it is carefully monitoring critical macroeconomic indicators including crude oil prices, exchange rate movements, capital flows and the implications for Nigeria’s fiscal outlook and external reserves.
Despite the uncertainties, the government noted that Nigeria is entering the period with strengthening economic fundamentals. Official data shows that the country recorded 4.07 percent real GDP growth in the fourth quarter of 2025, one of the strongest quarterly economic performances in more than a decade.
Coordinated Government Response
The Federal Government said coordination among fiscal, monetary and energy policy institutions remains ongoing, with policy options continuously reviewed to cushion households and businesses from potential external shocks.
Authorities emphasised that careful policy calibration will guide the government’s response to ensure that recent gains in macroeconomic stabilisation and economic growth are preserved.
The government assured Nigerians that it remains vigilant and prepared to take all necessary measures to protect the economy and sustain the country’s growth trajectory.
