WED MAR 11 2026-theGBJournal| The Federal Government of Nigeria is closely monitoring escalating geopolitical tensions in the Middle East involving the United States, Israel, and Iran, and remains committed to safeguarding Nigeria’s economic stability.
The Economic Management Team (EMT), chaired by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, convened a meeting to assess the impact on Nigeria’s economy.
The Honourable Minister also chaired a Naira-for-Crude policy coordination meeting to review 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,” EMT said.
The EMT said the government has identified three immediate transmission channels through which the crisis could affect the Nigerian economy, given Nigeria’s integration with global commodity and financial markets, :
1.Crude Oil and Gas Prices: Volatility in global energy markets is driving increases in domestic prices, including fuel, diesel, cooking gas, and fertiliser.
2.Capital Flows and Financial Markets: Heightened geopolitical risks may prompt a shift to safe-haven assets, affecting capital flows into emerging markets, including Nigeria.
3.Global Logistics and Supply Costs: Disruptions to major shipping routes could raise freight and logistics costs, putting upward pressure on domestic prices.
”Beyond these immediate effects, 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 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.
The EMT said it is maintaining close coordination across fiscal, monetary, and energy policy institutions, with policy options under continuous review to mitigate volatility and shield 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 Federal Government assures the public that it remains vigilant and proactive, and will take all necessary steps to preserve Nigeria’s economic stability and sustain its growth trajectory.
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