Nigeria moves to protect economy against rising conflicts, tensions in Middle East

*The Nigerian Government discloses certain practical steps being taken to adjust the fiscal policy measures, where necessary, to minimise disruptions arising from geopolitical conflicts in the Middle East, to maintain investor confidence and protect Nigerians’ wellbeing

Isola Moses | ConsumerConnect

The Federal Ministry of Finance has revealed that the Nigerian Government is taking steps to protect Nigeria’s economy following increasing geopolitical tensions in the Middle East involving the United States, Israel and Iran.

The Ministry said the Federal Government remained committed to safeguarding the economic gains already recorded in recent months.

The government also assured Nigerians, that it would continue to take measures aimed at maintaining stability in the face of global uncertainties in recent times.

Mrs. Uloma Amadi, Assistant Director of Information and Public Relations in the Ministry, noted this in a statement issued Tuesday, March 10, 2026, in Abuja, FCT.

Edun: Nigeria monitoring situation, global economic shocks

Amadi stated the government’s Economic Management Team (EMT) has intensified coordination among key fiscal, monetary and energy policy institutions, so as monitor the situation and respond quickly to possible global economic shocks resulting from the US-Israel war against Iran.

The statement further noted that Mr. Wale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy,  who chairs Nigeria’s Economic Management Team, said policy decisions would continue to be carefully managed.

Edun said that was to ensure that the progress already achieved in stabilising the economy is not reversed.

The Minister assured that the Nigerian Government would continue to review its policy options aimed at reducing the negative impact of global volatility on Nigerian consumers, households, businesses, and organisations.

The Ministry of Finance restated: “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 Economic Management Team met to assess the possible impact of the Middle East crisis on Nigeria’s economy, the statement further noted.

It explained that at the meeting, Mr. Edun as well 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.

The Ministry acknowledged that the current global situation remains uncertain.

The statement also indicated that there are growing concerns about possible disruptions to key global energy supply routes, especially the Strait of Hormuz, regarded as a major passage through which about 20 percent of the world’s oil supply passes in the Middle East.

Concerns about volatility in global crude oil prices

The Ministry of Finance said fears of disruptions in the area had already contributed to fluctuations in global crude oil prices, and increased uncertainty in international financial markets as of now.

It further 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.

The government stated that 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 ecosystem.

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, the Ministry said.

According to the statement, such capital movements could also affect financial market conditions and exchange rate stability in the local economy.

Besides, the government mentioned global logistics and supply costs as another possible transmission channel.

The Ministry said disruptions to major shipping routes or energy supply lines could increase freight and transportation costs across the world, and in turn, jack up prices of imported goods for Nigerian consumers.

Edun emphasised that if the crisis and attendant instability in the Middle East persist, they could lead to further increases in the costs of goods and services globally.

These, again, may add to inflationary pressures and raise the cost of living for Nigerians, stated he.

Ministers’ updates at EMT meeting

The government revealed that at the recent Economic Management Team meeting in Abuja, Ministers responsible for key sectors provided updates on how the situation could affect their respective areas of the Nigerian economy.

The statement noted the  members’ discussions indicated that the overall impact on Nigeria would 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 in this regard.

As regards the major areas of attention, the Ministry indicated these include movements in global crude oil prices, developments in the exchange rate, and their possible effects on domestic prices.

Besides, government officials are also tracking capital flows, financial market conditions, and the potential implications of the crisis on Nigeria’s fiscal outlook and foreign reserves.

Despite the apparent uncertainty in the global trade ecosystem, the Federal Government yet affirmed that Nigeria is entering the period from a position of improving economic fundamentals.

The Ministry related how the recent economic data showed that the country recorded a real Gross Domestic Product (GDP) growth rate of 4.07 percent in the Fourth Quarter (Q4) 2025.

The performance, it said, represents one of Nigeria’s strongest quarterly economic growth rates in over a decade, and reflects the positive results of ongoing economic reforms and improved macroeconomic coordination.

The government also assured that it would 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.

Therefore, careful policy management will remain crucial to the Federal  Government’s response to global uncertainties in order to sustain economic recovery and growth momentum.

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