The Federal Government of Nigeria is closely monitoring escalating geopolitical tensions in the Middle East involving the United States, Israel, and Iran, as it seeks to protect the nation’s economic stability. The Economic Management Team (EMT), chaired by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, convened a meeting to assess potential impacts on Nigeria’s economy, including domestic energy markets under the Naira-for-Crude policy framework.

The government highlighted that the situation remains fluid, with global market uncertainty driven by concerns over disruptions to critical energy supply routes, particularly the Strait of Hormuz. This has already contributed to volatility in crude oil prices and financial markets. Nigeria’s exposure to global commodity and financial markets means that the crisis could affect the economy through rising domestic fuel and gas prices, shifts in capital flows, and higher logistics and shipping costs. Sustained instability could also place further pressure on inflation and the cost of living.

Despite these risks, the Federal Government emphasised that Nigeria enters this period of global uncertainty from a position of strengthening economic fundamentals. Real GDP grew by 4.07 percent in Q4 2025, marking one of the strongest quarterly performances in over a decade. The EMT continues to coordinate across fiscal, monetary, and energy policy institutions, reviewing policy options to mitigate volatility and shield households and businesses from external shocks, while ensuring that recent gains in macroeconomic stabilisation and growth are preserved.