FG moves to protect economy amid Middle East tensions
The Federal Ministry of Finance has revealed that the federal government is taking steps to protect Nigeria’s economy following rising geopolitical tensions in the Middle East involving the United States,
The Federal Ministry of Finance has revealed that the federal government is taking steps to protect Nigeria’s economy following rising geopolitical tensions in the Middle East involving the United States, Israel and Iran.
The ministry said the government remains committed to safeguarding the economic gains recorded in recent months and will continue to take measures aimed at maintaining stability in the face of global uncertainties.
This assurance was contained in a statement issued on Tuesday by the Assistant Director of Information and Public Relations at the ministry, Mrs. Uloma Amadi.
According to the statement, the government’s Economic Management Team (EMT) has intensified coordination among key fiscal, monetary and energy policy institutions in order to monitor the situation and respond quickly to possible economic shocks.
The statement said the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who chairs the Economic Management Team, said policy decisions will continue to be carefully managed to ensure that the progress already achieved in stabilising the economy is not reversed.
Edun said the government would continue to review policy options aimed at reducing the impact of global volatility on Nigerian households and businesses.
“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,” the ministry said.
The statement said the Economic Management Team met to assess the possible impact of the Middle East crisis on Nigeria’s economy.
During the meeting, Edun also chaired a separate policy coordination session on the Naira-for-Crude initiative to review developments in global energy markets and their potential implications for Nigeria.
According to the ministry, the current global situation remains uncertain as concerns grow about possible disruptions to key global energy supply routes, especially the Strait of Hormuz, a major passage through which a significant portion of the world’s oil supply passes.
The ministry noted that fears of disruptions in the area have already contributed to fluctuations in global crude oil prices and increased uncertainty in international financial markets.
It explained that because Nigeria is connected to global commodity and financial markets, developments in the Middle East could affect the domestic economy through several channels.
One of the immediate areas of concern is the volatility in global crude oil and gas prices. According to the government, rising energy prices in international markets are already pushing up domestic costs for products such as petrol, diesel, cooking gas and fertiliser.
Another area being closely watched is capital flows and financial markets. The ministry said increasing geopolitical tensions could lead global investors to move funds into safer investment destinations, a development that may reduce capital flows to emerging economies such as Nigeria.
Such movements, it said, could also affect financial market conditions and exchange rate stability.
The government also pointed to global logistics and supply costs as another possible transmission channel.
According to the ministry, disruptions to major shipping routes or energy supply lines could increase freight and transportation costs across the world, which may in turn push up the prices of imported goods in Nigeria.
Edun said that if instability in the Middle East persists, it could lead to further increases in the cost of goods and services globally, which may add to inflationary pressures and raise the cost of living for Nigerians.
At the Economic Management Team meeting, ministers responsible for key sectors provided updates on how the situation could affect their respective areas of the economy.
The discussions noted that the overall impact on Nigeria will largely depend on how long the conflict lasts and how severely it affects global oil supply and prices.
The government said it is therefore monitoring several key economic indicators to guide its policy response.
These include movements in global crude oil prices, developments in the exchange rate and their possible effects on domestic prices.
Officials are also tracking capital flows, financial market conditions and the potential implications of the crisis for Nigeria’s fiscal outlook and foreign reserves.
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Despite the uncertainty in the global environment, the Federal Government said Nigeria is entering the period from a position of improving economic fundamentals.
According to the ministry, recent economic data shows that the country recorded a real Gross Domestic Product growth rate of 4.07 per cent in the fourth quarter of 2025.
The ministry said the performance represents one of Nigeria’s strongest quarterly economic growth rates in more than a decade and reflects the positive results of ongoing economic reforms and improved macroeconomic coordination.
The government said it will continue to monitor global developments closely and adjust policy measures where necessary in order to minimise disruptions, maintain investor confidence and protect the welfare of Nigerians.
Edun said careful policy management would remain central to the government’s response to global uncertainties so that the country’s economic recovery and growth momentum can be sustained.
