Nigeria’s government said it is closely monitoring rising tensions in the Middle East, warning that disruptions in global energy markets could raise fuel costs and increase operating expenses for critical sectors including telecommunications and data infrastructure.
The Economic Management Team (EMT), chaired by Wale Edun the minister of Finance and Coordinating Minister of the Economy, met to assess how the escalating geopolitical tensions involving the United States, Israel and Iran could affect Nigeria’s economic stability.
The government said the situation remains fluid, with growing uncertainty in global markets driven by fears of disruptions to key energy supply routes, particularly the Strait of Hormuz and telecom facilities.
Officials noted that volatility in global energy markets could quickly translate into higher domestic prices for fuel, diesel, cooking gas and fertiliser, creating ripple effects across multiple sectors of the economy.
Higher diesel prices could raise operating costs for businesses that rely heavily on backup power systems, including telecom networks, digital infrastructure facilities and other technology-driven operations that depend on stable electricity supply.
The government identified three immediate channels through which the crisis could affect Nigeria’s economy: volatility in crude oil and gas prices, shifts in global capital flows, and rising logistics and shipping costs.
According to the finance ministry, disruptions to global shipping routes could increase freight and logistics expenses, putting additional pressure on domestic prices and the broader cost of doing business.
Officials also warned that heightened geopolitical risks could push global investors toward safe-haven assets, potentially affecting capital flows into emerging markets such as Nigeria and creating pressure in financial markets.
Edun said the scale of the impact would depend on the duration and intensity of the conflict, particularly how it affects global oil supply and price movements.
The Economic Management Team said it is closely tracking several key indicators, including global crude oil prices, exchange rate movements, capital flows, and the implications for Nigeria’s fiscal outlook and external reserves.
Despite the uncertainty, the government said Nigeria enters the period of global instability with improving economic fundamentals.
Recent data showed the country recorded 4.07 percent real GDP growth in the fourth quarter of 2025, one of its strongest quarterly performances in more than a decade, reflecting the impact of ongoing economic reforms and improved macroeconomic coordination.
The government said it remains committed to protecting these gains and is maintaining close coordination across fiscal, monetary and energy policy institutions.
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Edun said policy measures remain under review to manage potential volatility, sustain investor confidence and shield households and businesses from external shocks.
The government assured the public that it will continue to monitor developments closely and take necessary steps to safeguard Nigeria’s economic stability and growth trajectory.
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