The Federal Ministry of Finance Nigeria says the federal government is closely monitoring the escalating tensions in the Middle East involving the United States, Israel and Iran, warning that the conflict could affect energy prices and capital flows into emerging markets, including Nigeria.
Gatekeepers News reports that in a statement issued on Wednesday, Uloma Amadi, assistant director of information and public relations at the ministry, said the government is tracking developments in oil prices, exchange rates and global financial markets to assess their potential impact on Nigeria’s economy and reserves.
According to the ministry, the Economic Management Team Nigeria (EMT), chaired by the Minister of Finance, Wale Edun, recently convened a meeting to evaluate the implications of the ongoing conflict for the country’s economic outlook.
The minister also presided over a naira-for-crude policy coordination meeting to review developments in the global energy market and their potential domestic consequences.
“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.
Given Nigeria’s integration with global commodity and financial markets, the government identified three major channels through which the crisis could affect the local economy.
These include crude oil and gas prices, capital flows and financial markets, as well as 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 statement 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.”
The ministry warned that prolonged instability in the Middle East could further worsen inflation and the cost of living.
It added that the EMT is closely monitoring key macroeconomic indicators such as crude oil prices, exchange rate movements, capital flows and their implications for Nigeria’s fiscal outlook and external reserves.
Despite the uncertainty, the government said Nigeria is entering the period of global volatility from a relatively strong economic position.
“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 the fourth quarter of 2025, one of the strongest quarterly performances in more than a decade,” the ministry said.
The EMT said it will continue coordinating fiscal, monetary and energy policies while reviewing measures aimed at reducing volatility and shielding 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 statement added.
The ministry also reassured the public that the government remains vigilant and committed to protecting Nigeria’s economic stability and sustaining growth.
